Fired for Raising Concerns at Work? What the Hint Water Case Reveals About Retaliation

Workplace disputes can arise at any level of a company, even at the very top. A lawsuit filed against flavored water brand Hint, Inc. underscores how even high-ranking executives can face retaliation and wrongful termination. The case, filed in San Francisco Superior Court, centers on allegations of corporate misconduct and the challenges employees face when speaking out against unfair treatment.

Kara Goldin founded Hint, Inc. in 2005 and worked with her husband Theo Goldin, who served as the company’s chief operating officer. She claimed they were wrongfully terminated after voicing concerns about alleged conflicts of interest and gender discrimination within Hint’s leadership. Certain board members allegedly misused confidential company information and retaliated against the Goldins for speaking up.

The Goldins are seeking damages that include compensation for unused paid time off, which they estimate to be at least $350,000. Additionally, they have asked a judge to reinstate them to their former roles at the company over three years after being fired by Hint’s board of directors.

The lawsuit highlights conflicts between the company founders and its investors, particularly Belgium-based food and beverage investment firm Verlinvest. In the years leading up to the Goldins’ termination, Verlinvest gained majority control over Hint’s board. The Goldins claim that board members representing Verlinvest fired them in retaliation for raising concerns about alleged conflicts of interest and the disclosure of confidential information outside the company in violation of California law.

The lawsuit includes claims of gender discrimination. The complaint alleged that Kara Goldin was treated in a “biased, sexist and discriminatory manner” as the only female CEO in Verlinvest’s portfolio of companies at the time. The board members have denied wrongdoing.

Workers in any position may experience workplace retaliation in various ways. While the Goldins were top executives, their case reflects broader concerns that many workers face when they report misconduct or challenge unethical behavior. They may experience pushback for reporting misconduct, whether it involves discrimination, financial mismanagement or other violations. Fear of retaliation can discourage employees from speaking up, allowing workplace issues to persist unchecked.

Retaliation can take many forms, such as wrongful termination, demotion, loss of responsibilities or even exclusion from key decisions. California law provides protections against retaliation when workers report alleged misconduct. However, enforcing these rights can be difficult, particularly when companies use arbitration clauses to keep disputes out of public view. In such circumstances, seeking the help of a knowledgeable employment lawyer can be vital.

Hint, Inc. has denied the allegations, arguing that the Goldins’ claims should be resolved through arbitration, a private process often included in employment contracts to settle disputes outside of court. Many corporations, including Bay Area tech companies, require workers to undergo arbitration.

However, the Goldins contend their arbitration agreements are not enforceable as they did not have proper legal counsel when signing the documents. The company maintains the Goldins’ removal was a strategic decision to position the brand for future growth. Since its founding in 2005, Hint beverages have gained popularity among tech workers and consumers seeking sugar-free flavored water. 

While most employees facing retaliation do not hold executive positions, the underlying issues are similar. Executives may have more resources to fight back, but many workers often feel powerless to challenge wrongful termination or other unfair treatment. Retaliation can have lasting professional and financial consequences, making it crucial for employees to understand their rights and seek legal guidance if they believe they have been treated unlawfully.

If you suspect you have been wrongfully terminated or retaliated against for raising concerns in your workplace, you have options. The experienced San Francisco employment lawyers at McCormack Law Firm help workers navigate complex employment disputes and hold employers accountable for unlawful practices. Contact us today for a free initial consultation.