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Former exec sues ManpowerGroup following termination in wake of hacking

July 09, 2018

Former ManpowerGroup Inc. (NYSE: MAN) executive Sheldon Schur filed a lawsuit alleging the company breached a contract when it terminated him following a wire-fraud hacking incident in late 2017.

Schur joined ManpowerGroup in 2006 and most recently was VP and general manager of global sales, overseeing a number of clients, according to the lawsuit. It alleges Schur was fired without cause and entitled to his full severance package, which includes unpaid salary, benefits and annual incentive compensation, along with the pro rata accrual of a $200,000 retention incentive and a $250,000 severance payment.

Schur’s complaint says he was paid a 60-day base salary continuation, COBRA benefits and three months of outplacement services.

According to the lawsuit, a hacker in late 2017 apparently gained access to the email account of a ManpowerGroup employee on Schur’s team who was responsible for a major client corporation whose account Schur managed. Posing as the employee, the hacker sent fraudulent wire transfer requests to ManpowerGroup employees, and funds were sent to the hacker’s account. When Schur received a further, larger wire transfer request for almost $3 million, he refused to approve the request and ManpowerGroup began investigating the earlier wire transfer requests, according to the lawsuit.

However, in a March 11, 2018, letter terminating Schur, Senior VP of Global Sales John Williams cited “several performance failures related to this incident that directly contributed to a significant financial loss for the company.” These included approving wires without proper document review and not taking accountability to appropriately protect the company.

Schur last month took the role of president at nurse staffing firm Gifted Healthcare.

The lawsuit is Sheldon Schur vs. ManpowerGroup Inc. and seeks a jury trial. It was filed in the US District Court for the Eastern District of Wisconsin, Milwaukee Division.