Citigroup Discrimination Suit Must Be Arbitrated

February 16, 2006 ( - A former executive of Citigroup Inc., who has sued the bank for discrimination, has lost his bid to have his case tried in federal court.

Reuters reports that a US District Court judge has ruled that Ramesh Menon, a naturalized citizen of Indian descent, is bound by a clause in the Citigroup employee handbook that requires arbitration of disputes.  

Menon filed his lawsuit in October, claiming he was underpaid, denied promotions, and retaliated against for his discrimination complaints (See  Citigroup Exec Sues over Discrimination Allegations).   Citigroup fired Menon less than a month after he filed his lawsuit, according to Reuters.

The judge’s order said, “Plaintiff’s assumption of the obligation to arbitrate was manifested by his decision to continue … employment,” the news report said.   A Citigroup spokeswoman said the bank is pleased with the court’s decision.

Menon said he intends to proceed with the arbitration.