A Colorado federal magistrate judge has taken a decisive step in the lawsuit involving a former regional sales director of a Fortive subsidiary. Erin Maxwell's suit alleges that she was fired after exposing possible violations of the company's anti-kickback rules. In a dramatic turn of events, U.S. Magistrate Judge S. Kato Crews has cut Maxwell's wrongful termination claim but upheld her state wage law and breach of contract allegations.

Whistleblower's Battle Unfolds

Erin Maxwell's legal battle against Advanced Sterilization Products Inc. (ASP), a medical device company specializing in infection prevention services, has captured the attention of the legal community. Maxwell, who joined ASP as a regional sales director in 2012, found herself entangled in a web of corporate misconduct.

Whistleblower's Suit Against Fortive Unit  : Judge's Ruling

In a Thursday order, Judge Crews partially granted ASP's motion for judgment on the pleadings. While Maxwell's breach of contract and wrongful discharge claims faced scrutiny, her Colorado Wage Act claim emerged unscathed.

The judge noted that implied contracts found in ASP's standards of conduct and code of ethics documents could potentially support Maxwell's breach of contract claim. However, her wrongful discharge claim hit a roadblock as she failed to specify a public policy violated by ASP when they terminated her.

Whistleblower's Suit Against Fortive Unit : The Fine Print

Judge Crews clarified that if an employer includes a "clear and conspicuous" disclaimer in an employee handbook, explicitly stating that it does not intend to create a contractual relationship with the worker, this can nullify any suggestion of a contractual obligation. However, ASP's 2020 standards of conduct and code of ethics lacked such disclaimers, potentially leaving the door open for Maxwell's claim that the company breached its duty not to retaliate against her.

A Whistleblower's Plight

Maxwell's tumultuous journey began when she voiced concerns about the company's pricing to her supervisor in February 2021. She believed the pricing violated certain agreements, but a corporate accounts director instructed her to offer the customer lower pricing without proper approval. Her supervisor, rather than addressing her concerns, instructed her to follow the director's orders.

Maxwell's predicament escalated as she reported harassment from co-workers for bringing her compliance concerns to the company's attention. Throughout 2021, the company's human resources engaged in discussions with Maxwell about complaints regarding her behavior, which she claimed were retaliatory. Despite her continued reporting of compliance concerns, she was asked to leave the company in November 2021, and her termination was effective in December. Maxwell subsequently filed her complaint in April 2022.

The Silence

Representatives of the involved parties did not immediately respond to requests for comment as the case continues to unfold.

Erin Maxwell is represented by Bailey C. Pompea, James S. Helfrich, and Jennifer E. Schlatter of Allen Vellone Wolf Helfrich & Factor PC.

Advanced Sterilization Products is represented by Harrison J. Meyers and William F. Cusack III of Ogletree Deakins Nash Smoak & Stewart PC.