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Keane to pay $1.14M in harassment case(Boston Globe, The (KRT) Via Thomson Dialog NewsEdge) Jun. 14--Charlestown technology firm Keane Inc. revealed yesterday that it will pay $1.14 million to settle a sexual harassment complaint by a top female employee that led to the resignation last month of its president and chief executive, Brian T. Keane. The publicly traded company also settled a second harassment allegation made against Keane by a former female employee, but the amount of that agreement was not made public. The settlements, disclosed in a financial filing yesterday, bring legal closure to a public relations fiasco that has dogged the firm since Brian Keane stepped down May 10, after being accused of harassment by its vice president of marketing, Georgina Fisk, and the former employee, who has not been publicly identified. As part of the agreement, Fisk will resign June 30. Because Fisk is an officer, Keane was required to disclose the amount of her settlement, according to Keane's marketing director, Veronica Kido. The other employee was not an officer, so her settlement was not disclosed, Kido said. Boston attorney Robert B. Gordon, who specializes in employment law, described Fisk's settlement, which includes $80,000 in attorney fees, as "a very substantial amount of money." Boston lawyers Barbara A. Robb and Nancy S. Shilepsky, who represent the two women, had no comment. Fisk's settlement prevents her from bringing any future legal claims against the company, Brian Keane, company founder John F. Keane, or John F. Keane Jr., who is Brian's brother and a board member. It also prohibits the company and the three Keanes from taking action against her, and requires the parties to keep the terms of the agreement confidential and to not disparage one another, which are standard conditions of many legal settlements. Kido, who described the settlements as a "constructive resolution," said: "The board of directors, the office of the president, and the company have a deep commitment to the highest standards of integrity, behavior, and ethics, and we are dedicated to providing and maintaining a work environment that is free from harassment and discrimination." According to company officials, Brian Keane, 45, received the first of the employee allegations on April 25 and notified the board's corporate governance committee of the complaint in early May. The board then consulted with lawyers inside and outside the company to investigate the allegations and determine a course of action. Brian Keane stepped down May 10. At that time, Brian Keane called the allegations "utterly baseless and false" and said he would work with company officials to refute them. He resigned, he said, because the charges presented a distraction for the company his father started above a Hingham doughnut shop more than four decades ago. Two days later, company officials issued a statement confirming that harassment complaints had been made by one current and one former employee, and disclosing that Brian Keane had "admitted to personal conduct" that "reflected poor judgment." No details were provided. Board members said Brian Keane had made a "joint decision" with the board to step down. The statement, while it did not name her, came in response to comments to The Boston Globe by Keane's mother, Marilyn T. Keane, who insisted her son was "blameless" and said he had been falsely accused by Fisk after she was demoted in a restructuring. Marilyn Keane, the company's largest shareholder, said her son had been accused of inviting Fisk to accompany him on his sailboat and of sharing frustrations about his marriage. Founded in 1965 by John F. Keane, who is now chairman of the board, the company originally focused on designing and implementing custom software and has since expanded into business consulting and business process outsourcing. Its customers include financial services firms, healthcare clients such as hospitals and HMOs, manufacturing companies, and utilities. It has 10,000 employees in North America, the United Kingdom, India, and Australia. John J. Leahy, executive vice president and chief financial officer, is serving as interim president and chief executive while the board conducts a national search for Keane's successor. Company officials said they expect to take three to six months to fill the post. As part of his resignation agreement, Brian Keane will stay on as a $26,000-a-month consultant through 2007. |