The former chief executive of listed firm Rosenblatt Group – now RBG Holdings plc – breached her fiduciary and director's obligations by ‘preferring her personal financial interests over her duties', according to documents filed at the High Court. The allegations appear in a counterclaim to Nicola Foulston's action against her former employer following the termination of her contract with immediate effect earlier this year.
At the time, in a statement to the London Stock Exchange, RBG, which incorporates Rosenblatt and Memery Crystal, said the decision was made ‘as a result of cultural concerns and the execution of the group’s strategy’.
Foulston was appointed Rosenblatt’s chief executive in 2016 after turning motor sport promoter Brands Hatch Leisure from a £6m business to one which sold for more than $195m. She claims she was wrongfully dismissed by RBG and that the company acted in breach of contract.
This month, RBG, which denies all allegations against it, filed a counterclaim for loss and damage caused by alleged breaches of contract.
In submissions to the High Court, RBG said it had placed a ‘high degree of trust’ in Foulston and was entitled to end her contract without notice. Documents allege that Foulston ‘engaged in unacceptable conduct which evidenced a closed-mindedness and intolerance to diversity and inclusion’ and she ‘discriminated against an employee’.
Foulston's solicitor, Nicholas Hine, of employment firm Constantine Law, said there would be no comment at this stage.
The case has not yet been listed.
