Former Ocean Casino Resort general counsel files unlawful termination suit, alleging retaliation for whistleblowing

ATLANTIC CITY, NJ (September 22, 2020)–Loretta Pickus, former Senior Vice President and General Counsel of Luxor Capital Group’s Ocean Casino Resort in Atlantic City on Tuesday filed a lawsuit alleging unlawful termination after she blew the whistle on malfeasance by the casino’s Audit Committee in 2019.

Ocean Casino Resort officials fired Pickus–who has more than 30 years experience as in-house general counsel in the New Jersey casino industry–and replaced her with a less-experienced male attorney. The firing came after Pickus spoke out about apparent intentional discrepancies in July 2019 Audit Committee minutes. The Committee submitted those minutes to the New Jersey Division of Gaming Enforcement regarding a decision the Committee made at its January 2019 meeting. Pickus voiced concern about the discrepancy, which concerned the appointment of a new Director of Surveillance for the casino, a closely regulated position, and whether that position had been filled in accordance with law.

On January 23, 2020, Pickus attended a meeting of the casino’s Audit Committee, where she presented a brief statement and memo requesting that the Audit Committee correct its July 2019 minutes and take responsibility for submitting false minutes to the New Jersey Division of Gaming Enforcement. Four days later, on January 27, 2020, Luxor and the casino terminated Pickus after telling her she should have spoken “softer” and “less harshly” when she reported the apparent violations to the all-male Audit Committee.

“Ocean Casino fired Loretta Pickus for objecting to their submission of inaccurate information to the state agency charged with regulating it. The reasons the casino officials communicated to her for the decision to fire her reveal a retaliatory motive fueled by gender discrimination,” said Pickus’ attorney, Katy McClure of Smith Eibeler, LLC. “Ms. Pickus has suffered not only economic and emotional harm, but harm to her professional reputation in a small industry.”

Pickus’ lawsuit is filed in the Superior Court of New Jersey against Ocean Casino Resort, Luxor Capital Group, as well as Cory Morowitz and Fred DeVesa, two members of the casino’s Audit Committee. Pickus is seeking restitution for her unlawful termination on January 27, 2020.

After Pickus reported that she believed that the Audit Committee’s July 2019 minutes were in violation of New Jersey casino regulations, New Jersey Division of Gaming Enforcement Director David Rebuck, a personal friend of DeVesa, told Pickus’ employers at Luxor and Ocean Casino Resort that she should be terminated. At the time, Luxor and Ocean Casino Resort were seeking approval from the New Jersey Division of Gaming Enforcement to be able to own and run the casino, which was then in trusteeship.

“Because of the unjust and inappropriate decisions of these Luxor Group officials, my career and excellent reputation have been severely harmed,” said Pickus. “Our team was like a family to me, so this has been a profoundly distressing and hurtful experience–particularly given that they acted quickly to replace me with a male attorney with less industry experience. I expected to remain in my position for many more years given the high performance reviews I have sustained over the course of my time with this company. I hope this lawsuit will rectify this injustice, and further expose the malfeasance they’ve undertaken.”

Pickus’ full complaint is attached.

PICKUS- Complaint - filed 9-21-20