Stacey Albert v. Microsoft Corporation et al.

District Court, C.D. California·Decided March 23, 2026·No. 8:25-cv-02642·Unknown

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA J S-6 CIVIL MINUTES — GENERAL

Case No. 8:25-02642-MRA-DFM Date March 23, 2026 Title Stacey Albert v. Microsoft Corporation et al.

Present: The Honorable MONICA RAMIREZ ALMADANT, UNITED STATES DISTRICT JUDGE Melissa H. Kuni None Present Deputy Clerk Court Reporter Attorneys Present for Plaintiffs: Attorneys Present for Defendants: None Present None Present Proceedings: (IN CHAMBERS) ORDER GRANTING PLAINTIFF’S MOTION TO REMAND [12], DENYING DEFENDANT’S MOTION TO DISMISS [19] Before the Court are two motions: Plaintiff's Motion to Remand this case to Orange County Superior Court and Defendant’s Motion to Dismiss all claims against Defendant Tim Ryder. ECF 12,19. The Court read and considered the moving, opposing, and reply papers and deemed the matter appropriate for decision without oral argument. See Fed. R. Civ. P. 78(b); L.R. 7-15. For the reasons stated herein, the Court GRANTS the Motion to Remand and DENIES the Motion to Dismiss. I. BACKGROUND A. Factual Background! Plaintiff Stacey Albert (“Plaintiff”) brings this employment discrimination action against her former employer Microsoft Corporation (“Microsoft”), her former colleague and supervisor Tim Ryder (“Ryder”), and Does 1-50 (collectively, “Defendants”). ECF 6-1. Plaintiff is an individual residing in California. Jd. § 6. Microsoft is a corporation with its principal place of business in Washington. Jd. Ryder is an individual residing in California. Jd. § 8. Plaintiff is a Native American woman who began working at Microsoft in 2011. Jd. § 14.

! The factual background is described as alleged in Plaintiff's Complaint. When deciding a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the court is required to presume that all well-pleaded allegations are true, resolve all reasonable doubts and inferences in the pleader’s favor, and view the pleading in the light most favorable to the non-moving party. See Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009); Daniels-Hall v. Nat’l Educ. Ass’n, 629 F.3d 992, 998 (9th Cir. 2010).

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL

Case No. 8:25-02642-MRA-DFM Date March 23, 2026 Title Stacey Albert v. Microsoft Corporation et al. Plaintiff was recruited by Microsoft and worked in a variety of roles, including within Microsoft’s Asia Pacific region. Jd. Plaintiff returned to the United States in 2017 as part of her promotion to “Level 66 Senior Director overseeing Retail, Consumer Goods, and Media & Entertainment.” Id. Plaintiff was the only Native American female executive at Microsoft. Jd. At all times during her employment, Plaintiff was known for her strong performance and leadership on diversity, equity, and inclusion (“DEI”) issues. Jd. In addition to her executive role, Microsoft designated Plaintiff to lead the regional arm of a national DEI initiative. Jd. In October 2017, Plaintiffs manager reassigned the only two Black account managers to report to Plaintiff, including one account manager who had previously lodged a racial discrimination complaint against his former manager. Jd.4§15. Atthe time of this reassignment, Plaintiff was the only manager in the group who was not a white man. Jd. In May 2018, a Microsoft human resources (“HR”) employee directed Plaintiff to award the account manager who had lodged the discrimination complaint at least 60 percent of his bonus even though Plaintiff had recommended he receive 0 to 20 percent of his bonus given his subpar performance. Id. ¥ 16. The HR employee cited the account manager’s prior discrimination complaint and the “risk of further claims” as the reason for the bonus. Jd. In January 2019, after receiving a reduced bonus, this same account manager filed a false sexual harassment allegation against Plaintiff. Jd. 4 17. These allegations caused Plaintiff significant personal and professional strain. Jd. Plaintiff informed HR that she believed the allegations were the result of retaliation for the reduced bonus, but Plaintiff was ignored. Jd. § 18. In May 2019, Microsoft concluded its investigation into the harassment allegation and determined it was baseless. Jd. In June 2019, Plaintiff's team was reassigned to a peer sales leader with lower attainment and less relevant experience than Plaintiff, and Plaintiff herself was demoted to an individual contributor role under Defendant Ryder. Jd. Ryder had previously expressed resistance to Plaintiff's DEI work and recommended that she cease her DEI advocacy. Id. In September 2019, Plaintiff received only 50 percent of her bonus (resulting in a loss of approximately $20,000) and her stock award was cut by 50 percent (resulting in a loss of approximately $42,800), despite her 104 percent attainment for the year. Jd § 19. Plaintiff raised that these reductions were the result of retaliation to multiple Microsoft executives (including the workplace investigation team, the HR Director, and the Vice President of Sales), but Plaintiff was ignored. Jd. In January 2020, Ryder “alluded to [Plaintiff's] performance issues without formal documentation.” d. From February 2020 to March 2020, the account manager who had previously filed the harassment claim against Plaintiff himself harassed Plaintiff and her husband via social media,

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES — GENERAL

Case No. 8:25-02642-MRA-DFM Date March 23, 2026 Title Stacey Albert v. Microsoft Corporation et al. “culminating in harassing LinkedIn messages containing sexually explicit language.” Jd. □ 20. Although Plaintiff reported the conduct to Microsoft HR and to LinkedIn (which is owned by Microsoft), no corrective action was taken. Jd. Plaintiffalleges this failure to intervene amounts to workplace harassment. Id. In August 2020, Plaintiff received a “zero rewards” designation from Ryder despite Plaintiff having reached 141 percent attainment that fiscal year. Jd. § 21. This designation denied Plaintiff approximately $40,000 in bonus compensation and $84,000 in stock compensation. Id. Based on the foregoing events, Plaintiff suffered significant emotional distress, leading her physician to recommend her reassignment to a “safer department to support workplace recovery under [the California Fair Employment and Housing Act].” Jd. § 22. Microsoft refused to reassign Plaintiff, “effectively forc[ing]” Plaintiff's resignation in January 2021. Jd. Microsoft denied Plaintiff severance benefits upon her resignation. Jd. After her resignation, Microsoft failed to respond to multiple requests from Plaintiff, including requests for her personnel file and for severance benefits. Jd. § 23. Based on these facts, Plaintiff brings six claims against all Defendants for: (1) discrimination on the basis of gender and race in violation of the California Fair Employment and Housing Act (“FEHA”); (2) harassment and hostile work environment in violation of FEHA; (3) retaliation in violation of FEHA; (4) whistleblower retaliation in violation of California Labor Code § 1102.5; (5) failure to prevent discrimination, harassment, or retaliation in violation of FEHA; and (6) constructive discharge in violation of public policy. Jd. 9 37-59. Plaintiff requests damages stemming from the harms of lost equity, career-trajectory harm, and emotional distress. Jd. 460. Plaintiff also requests damages in the form of lost severance benefits. Jd. B. Procedural History Plaintiff initiated this action in Orange County Superior Court on November 5, 2025.

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