Jordan Zahler v. Jackson Lewis P.C., et al

CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 11, 2026
Docket5:25-cv-04215
StatusUnknown

This text of Jordan Zahler v. Jackson Lewis P.C., et al (Jordan Zahler v. Jackson Lewis P.C., et al) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jordan Zahler v. Jackson Lewis P.C., et al, (E.D. Pa. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA __________________________________________

JORDAN ZAHLER, : Plaintiff, : : v. : Civil No.: 5:25-cv-04215-JMG : JACKSON LEWIS P.C., et al, : Defendants. : __________________________________________

MEMORANDUM OPINION Gallagher, J. February 11, 2026 I. BACKGROUND Plaintiff Jordan Zahler (“Plaintiff”) alleges nine causes of action against Defendants Gregory Alvarez (“Alvarez”) and his law firm, Jackson Lewis P.C. (“Jackson Lewis”) (collectively, “Defendants”). Plaintiff’s claims include whistleblower retaliation under the Consumer Financial Protection Act (“CFPA”), 12 U.S.C. § 5567 (Count I); violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) (Count II); civil conspiracy (Count III); unauthorized practice of law (Count IV); tortious interference with business relations (Count V); defamation (Count VI); fraud (Count VII), false advertising under the Lanham Act (Count VIII); and for declaratory judgment (Count IX). Plaintiff alleges that the action arises from Defendants’ knowing representation of a phantom entity, Dejavoo Systems LLC (“Dejavoo”). Before filing this action, Plaintiff was employed by Dejavoo, and Defendants served as Dejavoo’s legal counsel. In March 2024, while Plaintiff was still employed by Dejavoo, questions arose regarding whether certain credit card transactions within Dejavoo’s system were properly encrypted. Compl. ¶¶ 18-21. Plaintiff asserts that his purported whistleblower status stems from this encryption issue. Defendants, however, maintain that the Complaint and its exhibits show that Dejavoo raised the encryption concern with Plaintiff and other employees, not the other way around. Shortly after, Plaintiff’s employment with Dejavoo terminated. Although Plaintiff alleges

that he was fired by Dejavoo for threatening to report the encryption issue, Defendants argue that the documents attached to the Complaint contradict that narrative. Compl. ¶¶ 23-24, 40-41; see e.g., Exhibit AB (April 25, 2024, Dejavoo letter advising Plaintiff that he had “failed to return to work, effectively resigning voluntarily and abandoning [his] position.”). Plaintiff initiated two administrative proceedings arising from his termination: a whistleblower retaliation claim under the CFPA before an Occupational Safety and Health Administration (“OSHA”) tribunal, and an unemployment compensation claim before the Pennsylvania Department of Labor. Compl. Exhibits AC, AB-3. Defendants first contend that all of Plaintiff’s claims are barred under the Noerr- Pennington doctrine because they arise from Defendants’ representation of Dejavoo in litigation

or pre-litigation contexts. Defendants further argue that independent of Noerr-Pennington, each of Plaintiff’s individual causes of action fail to state claims upon which relief can be granted. In the alternative, Defendants request that the Court stay this action pending resolution of Plaintiff’s retaliatory discharge proceeding before an OSHA tribunal, asserting that the issues raised in the administrative matter substantially overlap with those presented here. II. LEGAL STANDARD “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). “Although the plausibility standard does not impose a probability requirement, it does require a pleading to show more than a sheer possibility that a defendant has acted

unlawfully.” Connelly v. Lane Const. Corp., 809 F.3d 780, 786 (3d Cir. 2016) (internal quotations and citations omitted). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. (citing Twombly, 550 U.S. at 555). A court is “not compelled to accept unsupported conclusions and unwarranted inferences, or a legal conclusion couched as a factual allegation.” Wheeler v. Wheeler, 639 F. App’x 147, 149 (3d Cir. 2016) (quoting Morrow v. Balaski, 719 F.3d 160, 165 (3d Cir. 2013)). III. DISCUSSION A. CFPA Whistleblower Retaliation Claim Plaintiff alleges that he was improperly fired for being a whistleblower. According to

Plaintiff, Defendants are liable for whistleblower retaliation under the CFPA because they participated in Plaintiff’s termination, “declaring [Plaintiff’s] warnings false and defamatory one day after security breaches while possessing proof of their accuracy.” Compl. ¶ 40. However, Plaintiff’s claim is flawed because he did not work for Jackson Lewis or Alvarez, and neither Defendant fired him. To establish a claim for whistleblower retaliation, an employee must prove, among other elements, that his employer took unfavorable action against him. Plaintiff’s claim fails as a matter of law because he has not sued a proper party here. Section 5567 of the CFPA imposes liability on a “covered person” or “service provider” that employs the whistleblower and takes adverse action against them. 12 U.S.C. 5567(a).1 Plaintiff, however, does not sue his former employer in this suit. He instead brings this claim against his former employer’s counsel. Defendants were not his employer, did not supervise him, and did not take any employment-related action against him. Indeed, Plaintiff worked for Dejavoo (not Defendants) and was terminated by Dejavoo (not Defendants).2 Because the CFPA’s whistleblower does not

create liability for an employer’s attorneys, Plaintiff cannot satisfy the statutory elements of a Section 5567 claim and his claim for whistleblower retaliation is dismissed with prejudice. B. RICO Claim Plaintiff’s RICO claim seeks to damages for his alleged retaliatory firing, claiming damages of loss of employment and its benefits. Defendant argues that Plaintiff does not have standing to bring a RICO claim based on his alleged retaliatory discharge because discharge from employment, even if wrongful and actionable on some other basis, is not “racketeering” activity. Defendants further argue that, even if Plaintiff had standing, he fails to plead the required racketeering activity element.

Courts have consistently held that in order for a plaintiff to assert standing, a defendant’s RICO violation must have caused the plaintiff’s injury. For example, in Beck v. Prupis, 529 U.S.

1 The CFPA defines a “covered person” as one who offers or provides consumer-financial products or services, and a “service provider” as one who provides material services in connection with such products or services. 12 U.S.C. §§ 5481(6), (26). Legal representation in litigation does not constitute the offering or provision of consumer-financial services, nor does it qualify as a material service connected to such products. Accordingly, outside counsel for an employer does not fall within either statutory category and cannot be held liable under § 5567’s whistleblower-retaliation provision.

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Jordan Zahler v. Jackson Lewis P.C., et al, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jordan-zahler-v-jackson-lewis-pc-et-al-paed-2026.