Royal Bank of Canada (New York Stock Exchange:RY) filed a countersuit against former Chief Financial Officer Nadine Ahn, detailing the findings of its internal investigation into her personal relationship with a co-worker, Reuters reported on Friday.
RBC's countersuit claimed Ahn had violated the bank's code of conduct. Report added.
In April, RBC said it had fired Ahn after an internal review found she had an undisclosed relationship with another executive, Ken Mason, that led to her preferential treatment, including promotions and compensation increases.
Ahn sued RBC in August for about C$20 million, arguing the bank had made a mistake in firing her because of a personal relationship with a co-worker and denied the two were a romantic couple.
According to the report, RBC said it had received an anonymous tip that Ahn and Mason were involved in an intimate relationship.
The bank said it had discovered that Ahn and Mason regularly used personal and work devices to communicate, the report added.
RBC said Ahn should reimburse the company about C$3.3 million for payments related to its performance-based deferred stock unit program, short-term incentive program and proceeds from the exercise of RBC stock options, the report said.
According to the report, the bank said Ahn decided to promote Mason to vice president and head of capital and term finance in 2023.
RBC court documents describe Ahn and Mason's relationship as beginning in 2013 or earlier, and point to their trysts, poems written by Mason and intimate email exchanges, the report added.
Royal Bank of Canada did not immediately respond to a request for comment from Seeking Alpha.