Richard Highbaugh v. Exelead, Inc.

Court of Appeals for the Seventh Circuit·Decided August 24, 2026·No. 25-2638·Published·Maldonado

Opinion

In the

United States Court of Appeals For the Seventh Circuit

No. 25-2638 RICHARD HIGHBAUGH, Plaintiff-Appellant,

v.

EXELEAD, INC., Defendant-Appellee.

Appeal from the United States District Court for the Southern District of Indiana, Indianapolis Division. No. 1:23-cv-01454-RLY-MJD — Richard L. Young, Judge.

ARGUED MAY 12, 2026 — DECIDED AUGUST 24, 2026

Before EASTERBROOK, MALDONADO, and TAIBLESON, Circuit Judges.

MALDONADO, Circuit Judge. After Richard Highbaugh’s employer, Exelead, Inc., declined to interview him for a promotion and gave the role to an external candidate, Highbaugh sued. Highbaugh, who is black and was 60 years old at the time, believes he was not selected because of his race and age (the selected hire was white and in his thirties). The district court granted summary judgment to Exelead, concluding that 2 No. 25-2638

Highbaugh failed to show that the company’s justification for its decision—concern about Highbaugh’s qualifications—was pretextual. We agree and affirm.

I. Background

A

Highbaugh has worked for Exelead, a clinical drug manufacturer and distributor, for upwards of 28 years in various warehouse positions. At some point during his first 10 years with the company, Highbaugh, then working as a Material Technician, began performing “sampling” duties. Sampling involved taking samples of raw materials that arrived at the warehouse and delivering them to a lab for testing to ensure suitability for drug manufacturing. Highbaugh was promoted around 2008 to a team lead position, to a supervisory role around 2013, and to the role of Senior Supervisor around 2017.

In August 2019, Highbaugh received a verbal warning for “substandard work and carelessness.” Highbaugh believed that this warning was in retaliation for a complaint he lodged the month prior about his workload. In the aftermath of the warning, Highbaugh explained to his manager that he could not maintain both the sampling duties and his supervisory duties. So Exelead soon reorganized the department and created a Sampling Specialist role for Highbaugh, continuing to give him the same pay he was receiving as a Senior Supervisor . Meanwhile, Highbaugh also submitted a charge to the Equal Employment Opportunity Commission (“EEOC”), alleging that he was experiencing race and age discrimination and retaliation because of the complaint he had made about his workload.

No. 25-2638 3

Highbaugh’s performance reviews varied. In 2020 and 2021, they were “lower than he expected”—he believed the negative feedback was in retaliation for his EEOC complaint. But his performance review in 2022 was generally positive. He was rated as above average in job knowledge and work quality; excellent in dependability; and satisfactory in attitude , communication, and work output. For those categories rated as satisfactory, written feedback indicated that Highbaugh ’s emails were sometimes difficult to follow, he could be more “effective[] and efficient[]” with his communication, there was room to increase his productivity and time management , and he could take initiative to learn new skills.

Highbaugh’s supervisor, Aaron Mendez, testified that though Highbaugh performed his job as a Sampling Specialist well, Mendez had concerns about Highbaugh’s skills and professionalism . For example, Mendez explained that Highbaugh ’s capabilities with Microsoft Excel and Word were “amateur or introductory at best,” which was concerning because Highbaugh had to prepare spreadsheets tracking his sampling; that Mendez had witnessed multiple occasions of Highbaugh “practically yelling” in front of his peers at team meetings while “air[ing] his frustrations”; that he received several poorly written emails from Highbaugh; that Highbaugh needed support with scheduling and time management ; and that Highbaugh “would constantly miss [] deadlines .” Based on these observations, Mendez believed Highbaugh “did not have excellent organizational, leadership, presentation, interpersonal, and written communication skills.”

Highbaugh disagrees with Mendez’s assessment of his skills and his behavior. He swore that Mendez “barely 4 No. 25-2638

observed” his work and had “never helped” him with things like scheduling or operating Microsoft Excel. Highbaugh opined that he has “great interpersonal and communication skills” and is “proficient” with Microsoft programs. Highbaugh also submitted affidavits from co-workers, who offered positive views about his skills.

B

In 2022, a vacancy became available for a Materials Manager position, the role to which Highbaugh reported as a Sampling Specialist. Mendez was responsible for conducting interviews and filling that vacancy.

The job posting was opened internally at Exelead from July 14 to July 21, 2022, though Highbaugh did not apply during that window. The posting instructed interested employees to submit the application form and a resume to Human Resources. Requirements listed in the job posting included 10 or more years of warehouse experience in the pharmaceutical industry; 5 or more years of department management experience ; 4 or more years of experience with particular software; proficiency with Microsoft programs; excellent organizational , leadership, and communication skills; and strong analytical and critical thinking skills. After the internal posting had been open for a week, it was posted externally.

About two months after the internal posting closed, Highbaugh approached Mendez on the warehouse floor and handed him his resume and an internal transfer form. According to Highbaugh, the interaction was brief, and Mendez thanked him. Mendez, for his part, says he thanked Highbaugh for his interest, “advised him that he was not the candidate that [he] was looking for for the role,” and explained

No. 25-2638 5

that he was looking for someone with exposure to larger scale manufacturing and demonstrated leadership with a team. But, Mendez says, he also expressed to Highbaugh that he was interested in putting Highbaugh “in more of a supervisor type role with potential for more responsibilities in leadership .” As Mendez tells it, Highbaugh seemed interested in that alternative role and told Mendez that he was applying for the Materials Manager role just in case Mendez could not find anyone else to fill it.

The next day, Highbaugh emailed Mendez asking (among a few other unrelated topics) “what is available to me between the senior supervisor and the manager’s position.” Though the email indicates he was inquiring about Mendez’s proposed alternative role, Highbaugh insists that he was really inquiring about the status of his application for the Manager role. Mendez did not reply. A few days later, Highbaugh emailed a Human Resources employee to ask if he had received Highbaugh’s application and resume for the Manager role; the employee had not.

In late October 2022, Mendez hired an external candidate named Brandon Miller—a white man in his thirties—for the Materials Manager position. Although Miller was lacking some of the qualifications listed on the job posting (most notably , he did not have 10 years of warehouse experience in pharmaceuticals and fell short of 5 years of management experience ), Mendez interviewed Miller because he had recently worked in another highly regulated industry and had managed teams of up to 20 people across multiple shifts and buildings. Mendez reports that in interviews, Miller appeared passionate about the role, showed problem solving skills, and provided detailed responses to questions and hypotheticals 6 No. 25-2638

posed to him. Mendez decided Miller was the best candidate for the job and extended an offer, which Miller accepted.

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Richard Highbaugh v. Exelead, Inc., (7th Cir. 2026).

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