Discover Fails to Trim Former ESG Officer’s Retaliation Lawsuit

Discover Financial Services must face a former ESG officer’s claim that the company breached the implied covenant of good faith and fair dealing by canceling his unvested equity awards.

Matt Johanson’s allegations that the company used a risk-review provision as pretext to cancel his awards in retaliation for reporting race discrimination is enough to support his claim that Discover acted in bad faith, Judge Heather K. McShain of the US District Court of the Northern District of Illinois said in a Wednesday order. Johanson sued Discover in December, asserting claims of retaliation and breach of contract.

• Discover argued ...