General Counsel Sues Former Firm for Defamation, Claims he was used as Shield to Protect CEO and Directors from SEC Investigation

Covering what should be an interesting case, Amy Miller reports at Corporate Counsel, that:

On Sept. 16, former general counsel Kent Roberts sued the software maker for defamation. He claims McAfee made him the scapegoat for a federal probe into backdating at the company. Roberts says that as a result, he hasn’t been able to find another full-time job, even though he was acquited of criminal backdating charges last year.

The suit, filed in federal district court in San Francisco, says that officials at Santa Clara-based McAfee gave misleading information about Roberts to the U.S. Department of Justice and the Securities and Exchange Commission. Roberts says the aim was to divert investigators’ attention from the board of directors and former CEO George Samenuk. The campaign even had a name, according to the complaint: ‘Project Shield.’

According to Roberts’ complaint (.pdf, courtesy AmLaw Daily and Courthouse News), Roberts’ claims center on (1) statements that Roberts had purportedly confessed to wrongdoing, leading to his termination (2) Project Shield, the code name of a project by which McAfee allegedly sought to protect officers of the company in an SEC investigation by offering Roberts as a scapegoat.

Raising some interesting questions on the most appropriate way to handle the inevitable public relations issues surrounding speculation of corporate impropriety, Roberts’ notes that McAfee posted a press release on the company’s website following Roberts’ termination, stating in part:

… the Company became aware of one episode involving the General Counsel in 2000 that was improper. As a result the Board has terminated his employment.

The press release was picked up by the Wall Street Journal, New York Times and Associated Press, among others. Roberts’ counsel particularly objected to the continued posting of that announcement through last week, despite the fact that he was acquitted of criminal charges and the SEC action was dismissed.

I’m looking forward to seeing where this goes.