Lawsuit Filed Against Emerging Worldwide Tech Company Alleges Company Operates Business, in part, on Employees’ Credit
San Diego (November 7, 2014) – MediaTek, Inc., based in Taiwan, is one of the fastest-growing chip design companies in the world, specializing in semiconductors used in cell phones, televisions, and other electronic devices. It rivals local giant, Qualcomm, and counts amongst its customers companies such as Lenovo, Sharp, and Acer. In its quest for worldwide domination, MediaTek has opened several new offices, including an office in San Diego (under MediaTek USA, Inc.). But, a recent lawsuit filed in the Superior Court of California’s Central Division in San Diego suggests that MediaTek’s quest is being funded, in part, on the credit of its employees, without their knowledge.
The plaintiffs in Rouse-Winans, et al. v. MediaTek USA, Inc. (Case No. 37-2014-00036616-CU-OE-CTL) allege that MediaTek provided them (and few other employees) with American Express “corporate” cards that were to be used to charge tens of thousands of dollars in travel and office expenses for the entire San Diego office. What MediaTek failed to disclose, the complaint alleges, is that the credit limits for these corporate cards were actually based on the plaintiffs’ personal credit ratings, that they were personally liable for all charges (including charges by other employees), and that MediaTek’s late or non-payment of the credit card bills could negatively affect their personal credit ratings.
Plaintiff Rouse-Winans alleges that after her corporate card was declined for greatly exceeding its limit, she learned of MediaTek’s deceit, complained to the Company’s Financial Department, and cancelled her corporate card, and as a result, was wrongfully terminated. As for Plaintiff Muschler, she alleges that she was then compelled to resign (constructively discharged) because she refused to continue to be held personally liable for the entire office’s expenses and knew that she would also be terminated if she cancelled her account.
The lawsuit was filed on October 27, 2014 by Plaintiffs’ attorneys, Zeldes Haeggquist & Eck, LLP, experienced employee rights attorneys located at Sixth and Broadway, in the heart of downtown San Diego, California. If you wish to discuss this investigation, please contact the attorneys at Zeldes Haeggquist & Eck, LLP.