Melissa Racklin v. Zeta Global Corp.

CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 11, 2023
Docket22-2077
StatusUnpublished

This text of Melissa Racklin v. Zeta Global Corp. (Melissa Racklin v. Zeta Global Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melissa Racklin v. Zeta Global Corp., (4th Cir. 2023).

Opinion

USCA4 Appeal: 22-2077 Doc: 29 Filed: 08/11/2023 Pg: 1 of 17

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 22-2077

MELISSA RACKLIN,

Plaintiff – Appellant,

v.

ZETA GLOBAL CORP.,

Defendant – Appellee.

Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. Anthony J. Trenga, Senior District Judge. (1:21−cv−01035−AJT−JFA)

Submitted: April 26, 2023 Decided: August 11, 2023

Before RICHARDSON and QUATTLEBAUM, Circuit Judges, and MOTZ, Senior Circuit Judge.

Affirmed by unpublished per curiam opinion.

ON BRIEF: Carla D. Brown, Peter C. Cohen, CHARLSON BREDEHOFT COHEN BROWN & NADELHAFT, P.C., Reston, Virginia, for Appellant. Jonathan Stoler, Eric Raphan, Lindsay C. Stone, New York, New York, Paul Werner, Imad S. Matini, SHEPPARD, MULLIN, RICHTER & HAMPTON, LLP, Washington, D.C., for Appellee.

Unpublished opinions are not binding precedent in this circuit. USCA4 Appeal: 22-2077 Doc: 29 Filed: 08/11/2023 Pg: 2 of 17

PER CURIAM: Melissa Racklin appeals the district court’s order granting summary judgment in

favor of Zeta Global Corporation on her claims for fraud in the inducement, breach of

contract and violations of Title VII. We agree with the district court that Racklin failed to

present evidence creating a genuine dispute about any material fact relating to these claims.

So we affirm.

I.

Zeta is a digital marketing and technology company. J.A. 128. Zeta hired Racklin’s

former boss, Donald Steele, in March 2017 to serve as its Chief Revenue Officer. J.A. 128.

Not long afterward, Zeta began recruiting Racklin. J.A. 129-130.

Racklin interviewed for a sales position with Zeta in October 2018. J.A. 129. During

the interview, Racklin met with Steele and Steven Gerber, Zeta’s Chief Operating Officer.

Id. According to Racklin, Gerber and Steele promised Racklin that she would be assigned

and or would lead the T-Mobile, Sprint and Verizon client accounts if she joined Zeta. But

Racklin also learned that Verizon Wireless (“VW”), which is Sprint and Verizon’s mobile

phone division, were already assigned to Chad Miller, Zeta’s Senior Vice President of

Brand Development.

A few days after her interview, Zeta sent Racklin an offer letter for the position of

Vice President for Enterprise Sales. J.A. 130. In that role, she would be responsible for

selling Zeta’s proprietary “ZX” product, “which provides digital media solutions to assist

companies in acquiring new customers.” J.A. 128. The offer letter did not identify specific

2 USCA4 Appeal: 22-2077 Doc: 29 Filed: 08/11/2023 Pg: 3 of 17

clients or accounts that Racklin would lead or work on. Id. It did not mention the

assignment of any particular accounts to her. Id. But it did provide that by signing the offer

letter, Racklin agreed to “comply with and be bound by the operating policies, procedures

and practices of the Company.” J.A. 49. The offer letter also stated that it “sets forth the

entire agreement and understanding between the Company and you relating to your offer

of employment and supersedes all prior verbal discussions between us.” J.A. 51. Racklin

admits she reviewed the offer letter and understood its terms before signing it. J.A. 131.

During Racklin’s employment at Zeta, she was paid a base salary and could earn

commissions on any deal with any client she brought to Zeta. J.A. 131. Racklin, like other

Zeta sales employees, received a new commission plan every calendar year. J.A. 131.

Racklin signed her first commission plan in March 2019. J.A. 131. This 2019 Plan provided

Racklin would be eligible to receive commissions in the amount of 5% of gross recognized

revenue on ZX deals she brought to Zeta. J.A. 131-132. And it gave Zeta the right to modify

and interpret the Plan’s terms. J.A. 132.

Around that same time, Racklin told Gerber, Steele and Sean Welsh—her direct

manager at the time—about an opportunity with Verizon Fios (“VF”), 1 which she claimed

was distinct from the work Miller was doing for VW through his Verizon contact. Gerber

authorized Racklin to pursue a “pilot” contract with VF. J.A. 132. But within a few months,

Verizon restructured and collapsed VF into its existing VW business unit and assigned

Miller’s contact at VW to manage Verizon’s overall Zeta relationship. J.A. 133. Verizon

1 VF is Verizon’s cable and internet division. J.A. 132 n.2.

3 USCA4 Appeal: 22-2077 Doc: 29 Filed: 08/11/2023 Pg: 4 of 17

then told Zeta that it wished to negotiate and deal with only one Zeta team going forward.

J.A. 133. Given those developments, Gerber assigned Miller exclusive responsibility for

the VW account. J.A. 133. Verizon also decided not to move forward with the VF pilot that

Racklin had been pursuing, after which Racklin had no further contact with Verizon. J.A.

133.

Gerber offered to amend Racklin’s 2019 Plan to make her eligible for commissions

amounting to 3% of gross recognized revenue over the “run rate” on ZX deals that any

Zeta sales representative closed with Verizon “for a period of up to three years.” J.A. 133-

34. 2 Although it provided her with the ability to earn commissions she would not otherwise

have had and although she signed the 2019 Amendment, Racklin disputes its validity. She

argues that she “repeatedly and adamantly objected to Zeta’s decision to remove her from

the Verizon account and reduce her Verizon commission to 3%,” and only “signed the

2019 Amendment . . . under duress.” J.A. 1940–941.

In March 2020, Gerber removed Steele as Zeta’s Chief Revenue Officer, dissolved

the sales team that Racklin was assigned to and terminated every team member except

Racklin and a few others. J.A. 134. According to Gerber, he did not terminate Racklin then

because he still believed in Racklin’s ability to generate revenue. J.A. 135. Gerber assigned

Racklin to a new ZX sales team reporting to Matt Martella, who Zeta had recently hired as

President of ZX. J.A. 134.

2 The nuances of “gross recognized revenue” and “run rate” are not material to our resolution of Racklin’s appeal.

4 USCA4 Appeal: 22-2077 Doc: 29 Filed: 08/11/2023 Pg: 5 of 17

In April 2020, Zeta presented Racklin with a copy of her proposed 2020 commission

plan. J.A. 135. The proposed plan changed the terms for her Verizon commissions. Instead

of commissions of 3% of gross recognized revenue over the run rate on ZX deals that any

Zeta sales representative closed with Verizon over three years, the proposed plan made

Racklin eligible for commissions on all Verizon business at a rate of 1% of sales from

Verizon for 2020. J.A. 135. According to Zeta, it did this because the final terms of the

VW deal were materially different from what had been originally anticipated, rendering

the run rate difficult to apply. Racklin initially refused to sign the Proposed Plan. J.A. 135.

Over the following two weeks, however, Racklin and Zeta negotiated revised terms. They

eventually agreed that (i) Racklin would be eligible to earn 1.5% of gross revenue from

Verizon for three years and (ii) Racklin’s commissions on Verizon deals would be

calculated based upon billed revenue rather than revenue actually collected. J.A. 135.

Although Racklin concedes she read this 2020 Plan before she signed it and understood its

terms, Racklin now claims she signed it under duress as well. J.A. 1941-1942.

Ultimately, the Version deal closed in 2020.

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