Dow Settles Ex-Employee Lawsuit

NEW YORK – Lawsuits initiated by one of Dow Chemical’s former company fraud investigators have been settled. Kimberly Wood, a 25-year employee of the company, claimed she was wrongfully fired for uncovering improper spending by CEO Andrew Liveris and others.

Rachelle Schikorra, a Dow spokeswoman, wrote in an email on February 9 that Dow and Kimberly Wood “reached an amicable settlement” of her claims, but added that the terms are confidential.

“Settling marks a reversal for Liveris, who is also chairman of the biggest U.S. chemical maker by revenue. After a federal judge rejected Dow’s motion to dismiss the suit in December, the company said it would defend the case vigorously,” Bloomberg News reported.

“Wood, who filed the case under whistle-blower provisions of the Sarbanes-Oxley Act,” according to Bloomberg “alleged Dow paid for Liveris family trips to the Super Bowl, World Cup and Masters Tournament, as well as an African safari, prompting the CEO to repay $719,923. She said Dow was “funneling money” to the Hellenic Initiative, a Greek charity Liveris co-founded.”

Bloomberg reported that “Wood claimed she found millions of dollars in cost overruns during the renovation of the Dow-owned H Hotel in Midland. She said she was fired in October 2013 after alleging Dow managers improperly recorded expenses to hide cost overruns at the Olefins 2 ethylene project, which she flagged to her supervisor as ‘financial-statement fraud.’”



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