Faruqi & Faruqi is a tiny Wall Street plaintiffs' law firm that's made a killing on "say on pay" litigation against huge corporations.
Now, the small but successful law firm's name has been dominating the business news for a different reason. It was hit with an extraordinarily graphic sexual harassment lawsuit.
The legal insider blog Above the Law first reported on the lawsuit, which accuses one of the firm's most successful partners of relentlessly harassing a junior associate.
Faruqi & Faruqi partner Juan Monteverde's alleged abuse of 2011 Vanderbilt Law grad Alexandra Marchuk culminated on the evening of the office holiday party in December 2011, according to her complaint.
Monteverde asked Marchuk to come into his office that night after revealing that he probably wouldn't recommend her for a bonus that year, according to the complaint.
From the complaint, courtesy of Above the Law:
"After entering his office, Mr. Monteverde pushed Ms. Marchuk to the floor and quickly, forcefully, and painfully had sex with her. Suffering discomfort and not wanting to continue having sex with him, Ms. Marchuk implored Mr. Monteverde to stop, but he disregarded her pleas and continued having sex with her."
Monteverde is apparently a huge money-maker for the firm. From The New York Times' Dealbook:
"In 2010, the Dodd-Frank Act gave shareholders a voice in dictating how much a company decides to pay its executives. Led by Mr. Monteverde, Faruqi & Faruqi has used the reforms to file complaints — and extract settlements — from corporations by suing them over pay-related matters."
"Mr. Monteverde has also been at the forefront of shareholder merger litigation, another booming business for the plaintiffs’ bar."
A few days after the holiday party, Marchuk quit the firm and says the firm never asked about her abrupt departure. She also says a partner at the firm suggested that Monteverde's "inappropriate behavior" could cost Faruqi & Faruqi a lot money, according to the suit.
Faruqi & Faruqi denies the allegations. “These claims are completely without merit, brought by a disgruntled former employee,” partner Lubna M. Faruqi, told Above the Law. “We look forward to aggressively defending our reputation in court and have every confidence we will be vindicated.”
Monteverde did not immediately respond to Business Insider's request for comment Friday.
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