CBA (ASX:CBA) sued by whistleblowing governance manager

Whistleblowers have received greater legal protection in recent years.

| More on:
a woman in business attire is blowing a whistle and holding up a red card, referring to a sporting analogy for sending someone off the field for disciplinary reasons.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Commonwealth Bank of Australia (ASX: CBA) is in the news this week for more than this morning's $6 billion share buyback announcement.

In a less fortuitous turn of events, CBA group governance executive general manager Kara Nicholls is suing the bank.

Why is CBA facing a lawsuit?

According to Nicholls, CBA's governance team has long been understaffed and overworked which has led to an excessively high turnover rate in the department.

Nicholls says she sounded the alarm to her superiors on numerous occasions but little to no action was taken to rectify the situation.

Now she's facing the loss of her job and is suing CBA, as the Australian Financial Review reports, for "allegedly seeking to fire her last week in response to 'whistleblower' complaints she made to senior officers and chairman Catherine Livingstone about the bank's failure to respond to repeated warnings on understaffing and workers' safety".

The Federal Court claim alleges:

The [bank] acted with conscious and contumelious disregard of the rights and interests of Ms Nicholls, and of the rights and interests of employees in the group governance team, including by way of raising legitimate concerns as to workplace health, safety, culture and resources.

CBA's spokesperson noted that the bank won't be commenting on the matter as it's currently before the Federal Court. They said the bank "takes any concerns raised by its current or former employees very seriously".

How has CommBank been performing?

The new pending lawsuit aside, CBA shareholders have largely enjoyed a stellar 12 months.

CBA's share price has gained 43% since this time last year, almost twice the 23% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

CBA has also maintained its dividend payments throughout the COVID-19 pandemic turmoil. At the current price of $106.56 per share, CBA pays a dividend yield of 2.39%, fully franked.

Should you invest $1,000 in Atlantic Lithium Ltd right now?

Before you buy Atlantic Lithium Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Atlantic Lithium Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Bank Shares

How did ASX bank shares react to the RBA decision?

The Reserve Bank of Australia just reduced interest rates by 0.25% in the second cut for 2025.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Dividend Investing

Dividends from ASX 200 bank shares 'looking very stretched': expert

The banks have always been a favourite choice among ASX dividend investors. But the outlook ain't great.

Read more »

A pink piggybank sits in a pile of autumn leaves.
Bank Shares

How much higher can the CBA share price rise?

One fund manager has given their view on the biggest bank.

Read more »

A young man goes over his finances and investment portfolio at home.
Bank Shares

Why is the Macquarie share price sinking today?

Let's see what is causing its shares to start the week in the red.

Read more »

Woman with spyglass looking toward ocean at sunset.
Bank Shares

Here's the earnings forecast out to 2029 for NAB shares

Let’s look at what experts are predicting for the bank.

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Bank Shares

Here's what Westpac says the RBA will do with interest rates next week

The RBA is meeting on Tuesday. Will it cut rates? Let's find out.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »

a young boy dressed in a business suit and wearing thick black glasses peers straight ahead while sitting at a heavy wooden desk with an old-fashioned calculator and adding machine while holding a pen over a large ledger book.
Bank Shares

Which big 4 ASX bank shares does Macquarie expect to cut their dividends?

Not every bank is likely to continue paying the same dividend.

Read more »