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A Massachusetts federal judge has ruled that the race discrimination lawsuit filed by Cayse Llorens, the former CEO of LexShares Inc., will proceed. The judge found that the claims are not time-barred, though she dismissed allegations against two board members, marking a partial victory for Llorens in his legal battle.

Racial Bias Claims Survive Court Challenge

On Tuesday, U.S. District Judge Patti B. Saris ruled that Llorens' claims of racial discrimination, brought against the litigation finance company LexShares, are not subject to the time limitations in his employment contract. The judge determined that the clause in the contract that limits the time window for filing employment claims was unenforceable because it failed to specify its applicability to discrimination claims. This decision means that Llorens can continue his lawsuit against LexShares.

However, the judge dismissed Llorens' claims against David Rosner, the chairman of the board, and Frank Van Lint, another board member. Judge Saris concluded that Llorens had not presented sufficient evidence to establish individual liability for either Rosner or Van Lint.

Allegations of Discrimination and Forced Resignation

Llorens filed his lawsuit in August 2023, alleging that his forced resignation from his position as CEO in December 2022 was the result of racial discrimination. He claimed that, despite being the only Black member of LexShares' five-person board of directors, he was subjected to disrespect and discrimination throughout his tenure.

In his complaint, Llorens accused LexShares, along with Rosner and Van Lint, of a pattern of racial bias. Llorens alleged that he was offered smaller bonuses than his white counterparts, and that his ideas were frequently dismissed without consideration. He further contended that his performance metrics were altered without notice, resulting in an unjust negative review shortly before his resignation. Meanwhile, his colleagues, Chief Investment Officer Max Volsky and President Jay Greenberg, were not subject to similar changes in performance criteria, he said.

Despite his objections, Llorens claimed that the board insisted on recruiting a replacement for him, leading to his resignation in December 2022.

Legal Battle Continues for Llorens

In their motion to dismiss, LexShares and its board members argued that the claims were time-barred under the 180-day limit in Llorens' employment contract. They also contended that Llorens' complaint lacked merit, claiming that Llorens had not demonstrated any concrete examples of racial discrimination.