Employee Sues San Francisco Hedge Fund for Misogynistic Workplace Culture

Intense and competitive work environments are often hallmarks of hedge funds. There may also be a lack of formal hierarchy with fewer checks and balances to prevent workplace misconduct. Without proper oversight, employees can more easily engage in unlawful behavior without any consequences. Additionally, workers may feel uncomfortable reporting wrongdoing like discrimination or harassment without fear of retaliation.

A recent lawsuit has shone a spotlight on the toxic work culture at a San Francisco-based hedge fund. A former employee sued Woodline Partners in the Superior Court of California, alleging a pervasive atmosphere of misogyny, oppression, intimidation, and discrimination within the firm. She is seeking a jury trial and unspecified damages for lost past and future earnings, damage to her career, and psychological and emotional distress.

Danielle di Bari, a former executive admin at Woodline Partners, claimed she was subjected to repeated instances of sexual harassment and discrimination during her employment. The allegations against the firm paint a disturbing picture of a workplace where inappropriate conduct, demeaning comments and discriminatory practices were not only tolerated but seemingly encouraged. Di Bari, 32, said she endured a hostile work environment and faced retaliation when she spoke up about it.

Di Bari was 27 years old when she started working at Woodline Partners upon its founding in 2019. She was among the around 20 staffers first employed at the firm. Workers were allowed to work from home two days a week. According to the lawsuit, di Bari was fired after requesting to work remotely for an extra day a week as a reasonable accommodation for her postpartum depression.

Di Bari questioned why Woodline Partners’ senior leaders were allowed to work fully remotely for most of the summer. Company co-founder Karl Kroeker, 51, allegedly wrote an email stating that young female workers were vital to the hedge fund’s “brand” as “many of us are nerds and need the uplifting pep of you ladies.” Kroeker was named as a defendant in the complaint.

Despite giving her employer a doctor’s note supporting the extra day of remote work, di Bari was fired a few days later. In a time when workplace accommodations for mental health are increasingly recognized as essential, Woodline Partners’ alleged response is particularly egregious.

California law allows workers to request reasonable accommodations for physical or mental disabilities that interfere with their ability to carry out their job duties. Employers are required to participate in an interactive process to determine what accommodations can be made to enable the employee to continue working.

Instead of supporting di Bari during a vulnerable time, Woodline Partners allegedly chose to retaliate against her through termination. The firm sent a “hostile message” to other female employees who might dare to speak up about their own pregnancy or childbirth-related needs, the lawsuit said.

Woodline Partners has six executive admins and two others who fill hybrid executive admin-receptionist positions. The team consists entirely of female employees who are in their twenties or thirties. The majority of analysts, traders, and portfolio managers at the firm are male. According to the lawsuit, young female executive admins were “expected to endure bawdy jokes, derogatory and demeaning comments, and other inappropriate conduct.”

Kroeker was accused of contributing to a demeaning work culture. The lawsuit described multiple examples of alleged misconduct. Over the years, Kroeker allegedly asked sexually suggestive, inappropriate hypothetical questions to di Bari and fellow executive admins during company events.

Work events such as happy hours or dinners can give rise to misconduct, often due to the relaxed, informal setting. Excessive drinking may be involved, and the lines between professional and social interactions can become blurred. There is nothing wrong with socializing with colleagues. However, sexual harassment or any other inappropriate behavior that workers experience is still unlawful, even if it occurs outside of the office or traditional workplace. 

If you have experienced unlawful treatment at work, reach out to a knowledgeable San Francisco employment lawyer. McCormack Law Firm is dedicated to protecting the rights of workers and standing up to employers who engage in illegal employment practices. We handle cases across many practice areas, including wrongful termination, retaliation, sexual harassment and discrimination. Contact us today for a free initial consultation.