January 2020

Boston Scientific Defends Challenge to Severance Plan

North America - United States | North America | United States - Minnesota | United States - New York

Our firm represented Boston Scientific Corporation’s Severance Plan for Exempt Employees in litigation in the Southern District of New York and later in the District of Minnesota. In this case, the plaintiff had been laid off and was therefore eligible to recover a significant severance plan award. However, on the day before the effective date of his layoff, the plaintiff became enraged when BSC representatives came to his home to retrieve his inventory, throwing his medical device inventory onto the sidewalk outside of his New York City condominium and rendering it unusable. After the effective date of his layoff but before it paid any severance, BSC investigated the incident and determined to retroactively classify the plaintiff’s termination as a for cause termination, thereby rendering him ineligible to recover any severance award. The plaintiff claimed that BSC’s retroactive classification of his employment separation was improper and that he was entitled to benefits under the Plan.

On summary judgment, the court found BSC’s Severance Plan had not abused its discretion in determining that the plaintiff had been fired for cause and was ineligible for any severance, dismissing the plaintiff’s claim with prejudice.

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