PulteGroup Faces Severe Allegations Of Racial Discrimination In Michigan Lawsuit

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Zinger Key Points
  • Ryan Adams, a Black ex-employee, sues PulteGroup for racial discrimination and unlawful termination.
  • Adams alleges PulteGroup violated its Code of Ethical Business Conduct & Code of Ethics.

On Wednesday, a lawsuit filed against PulteGroup Inc. PHM, one of the nation's largest home construction firms, highlighted alleged racial discrimination, unfair dismissal, and systemic racism within the corporation.

Ryan Adams, a former PulteGroup employee, initiated the suit. Adams, who worked for the company for three years, experienced a controversial dismissal.

See also: Share Sales, Harassment Allegations And Power Play: Turbulence Hits PulteGroup

What Happened: Adams, a Black employee, claims his dismissal was unjust, stemming from an incident involving an allegedly unauthorized package—despite package handling being a core component of his job.

He maintains that there were no verbal or written warnings given prior to his dismissal, a decision he attributes directly to racial discrimination, a behavior he alleges is common among PulteGroup's senior executives and managers.

According to the lawsuit, PulteGroup's treatment of Adams resulted in a hostile work environment.

Adams alleges that he endured degrading, demeaning, humiliating, and offensive treatment based on his race, which led to emotional distress and anxiety.

The lawsuit also contends that PulteGroup's senior executives favored the promotion of white employees loyal to them over minority employees who had merit, thus sidestepping corporate policies and scrutiny.

The lawsuit specifically names CEO Ryan Marshall, accusing him of fostering systemic racism within the company. It alleges that the 2020 establishment of a "Diversity Board" was a sham, as the board failed to address discrimination complaints from Black employees.

Another incident under scrutiny involves former Vice President of Construction Operations, Patrick Witzigman, who allegedly brought a lynching noose to a meeting with Black employees.

Adams's lawsuit focuses on a violation of the Michigan Elliott-Larsen Civil Rights Act (ELCRA), which outlaws employment discrimination based on race.

According to the lawsuit, Adams contends that PulteGroup, his employer, had a responsibility to not discriminate against him concerning employment, promotion opportunities, compensation, or other conditions or privileges of employment based on his race.

Adams further alleges that PulteGroup violated ELCRA by retaliating when he filed a complaint about the discriminatory practices to which he was subjected.

Adams is seeking more than $25,000 in compensation for each count, plus interest, costs, attorney fees, and punitive, compensatory, and exemplary damages for injuries and damages he suffered.

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