Delaware Judge Limits Corporate Sexual Harassment Liability

A former Credit Glory Inc. vice president who harassed two workers prevailed in court Monday against the company’s founder, after a judge said he’s accountable only to his victims and not the business.

A Delaware Chancery Court judge threw out the investor lawsuit filed against Christopher Lundgren by Alex Brola, the only other board member and shareholder of Credit Glory, which helps consumers dispute credit reports. Although Lundgren’s sexual advances and racist remarks were “deplorable,” he was abusing the authority held by any workplace manager rather than breaching duties he owed as a corporate executive, Vice Chancellor Lori W. Will ...