A Marina del Rey artificial intelligence company is being sued by a former employee who alleges he was wrongfully terminated earlier this year for complaining about not being paid wages owed.
The allegations in James Dustin Rowley's Los Angeles Superior Court lawsuit against D1srupt1ve Inc. and its subsidiaries include negligent misrepresentation, breach of contract and violations of the state Labor Code. He seeks unspecified compensatory and punitive damages.
Want to get caught up on what's happening in SoCal every weekday afternoon? Click to follow The L.A. Local wherever you get podcasts.
A representative for the startup did not immediately reply to a request for comment on the suit brought Tuesday.
Rowley, described in his court papers as an AI professional well- versed in assisting businesses in using the technology to thrive, was hired as chief creative officer at D1srupt1ve in February 2023 and reported to the company founder.
The work agreement gave Rowley cash compensation in tiers based on revenue targets reached by the company, according to the suit, which also states that he was to get an option to purchase 3 million shares of company stock and receive 100% health benefit coverage for himself and his family.
Rowley was not to be terminated without cause, the suit states. But while the plaintiff did all that was asked of him, he did not receive his earned wages from February to July 2023, the suit states.
"This put plaintiff in a difficult position (of) having to maneuver making a good impression on his new employer with the untenable position of not being paid for work performed, compensation he relied upon to support himself," the suit states.
Rowley had many meetings with another executive and submitted a spreadsheet of what he believed he was entitled to, according to the suit.
"However, defendant had other plans," according to the suit, which further states that retaliation against the plaintiff ensued.
Rowley was called into a virtual meeting with the two company executives and told he was being laid off, which he thought was odd given that the firm was about to release one or more products expected to generate millions of dollars in revenue, the suit states.
But Rowley believes the layoff, which was not put before the board of directors as required and one without cause, was an excuse to fire him for speaking out and avoid paying him the money and equity he was owed, the suit states.
Rowley refused to sign a company "royalty agreement" aimed at allowing the firm to avoid legal liability, according to the suit, which further states that the plaintiff has suffered emotional distress along with financial losses.
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok
