Home > News > Whistleblower Sues Playboy for Wrongful Termination • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Whistleblower Sues Playboy for Wrongful Termination

Whistleblower Sues Playboy for Wrongful Termination
Get XBIZ News
XBIZ Research
Will Google uphold its commitment to 'Freedom of Expression' when it comes to organic adult search results?
Yes
  32.68%
No
  67.32%
Out of 205 votes. Results based on votes submitted by members of XBIZ.net social network.
Monday, Oct 1, 2012    Text size: 

LOS ANGELES — Former Playboy Enterprises controller and ex-senior vice president Catherine A. Zulfer is suing the company for wrongful termination, claiming she was fired for not pushing through $1 million executive bonuses without board approval.

Zulfer claims she was laid off after refusing to take part in the embezzlement scheme hatched by CEO Scott Flanders and CFO Christoph Placher in October 2010.

Neither executive is named as a defendant in Zulfer's complaint against Playboy.

The suit maintains that Playboy violated the California Whistleblower Act and was filed in U.S. District, Central District last week. Zulfer, 56, also alleges that she was terminated because of her age and a company policy of canning employees there for more than 10 years.

Zulfer also sates that she was frozen out of meetings and was forced to take on an extraordinary workload after the company downsized while still in Chicago.

The 24-year Playboy veteran was fired on Dec. 31, 2011 after refusing a second request to dole out unwarranted bonuses in January 2011. At that time she blew the whistle on the scheme and reported what she saw as shady accounting practices to Playboy’s general counsel and the Securities and Exchange Commission (SEC).

The lawsuit does not report if the SEC responded to Zulfer’s allegations.

"She was extremely concerned that CFO Pachler and/or CEO [Scott] Flanders were attempting to effectively embezzle, steal or convert Playboy assets," Zulfer states in the 20-page complaint. "In the least, plaintiff reasonably believed that approving or paying bonuses without board approval would be dishonest to shareholders and violate Playboy governance and GAAP (generally accepted accounting principles)."

Most of the money was earmarked for Flanders and Pachler, Zulfer alleges.

According to Courthouse News Zulfer called Playboy’s action a “retaliation” against her.

Zulfer seeks punitive damages, reinstatement or front pay, and an injunction. She is represented by David deRubertis of Studio City, Calif.

Playboy was contacted by XBIZ for comment but did not respond by post time.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

Q&A With Andrew Conru of FriendFinder Networks

FriendFinder Networks founder Andrew Conru is firmly planted in the driver's seat leading the social entertainment giant and Penthouse brands. Conru took over the reigns as CEO in January after the company... More »

WIA Profile: Lynn Swanson

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Changing the Game: Kheper Games Reaches 20-Year Milestone

June not only marked the 20th anniversary of Kheper Games, it also denoted another milestone for the company – reaching its 20 millionth game sold. Kheper Games, Inc. started in 1994 as Kheper Publishing. “I... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

CatalystCon West

Sep 11 - Sep 14
Los Angeles, California

International Lingerie Show

Sep 15 - Sep 17
Las Vegas, Nevada

Webmaster Access Amsterdam

Sep 19 - Sep 22
Amsterdam, Holland

The European Summit

Sep 22 - Sep 25
Prague, Czech Republic
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!