Citigroup Inc. is being sued by an employee in a unit that serves hedge funds who says he was demoted for reporting harassment complaints about a new hire and discriminated against based on his sexual orientation.
Thomas Krauss, who joined Citigroup in 2010 and until recently led the firm’s capital introduction group for the Americas, accuses the lender of retaliating against him after he raised questions around a key hire in its prime-brokerage unit. He’s seeking unspecified money damages in a complaint filed Monday in New York State Supreme Court in Manhattan.
Krauss, who is gay, also alleges that he was denied a promotion to managing director because of his sexual orientation and extra work he did on behalf of the company’s LGBTQ initiatives.
A spokesperson for Citigroup didn’t immediately provide comment.
Wall Street firms have come under scrutiny for their lack of diversity and for failing to promote people of color to top management roles. Companies across a range of industries have also faced pressure as Black Lives Matter protests have called for systemic changes to policies around hiring.
Krauss’s suit claims he was demoted after he informed management about complaints that made about a prospective hire’s past behavior.
Krauss says he followed proper procedure when confidentially disclosing the information and alleges that management looked into who the whistle-blower was and landed on him, which led to his being retaliated against.