Sullivan & Cromwell hit with harassment shocker

Prominent New York law firm Sullivan & Cromwell may be best known as a mammoth deal player with such clients as Microsoft and Goldman Sachs. But its sterling image took a hit yesterday after one of the firm's lawyers launched a sexual-discrimination lawsuit alleging anti-gay behaviour that would seem more in keeping with a fraternity school hazing ritual than the activities of a respected law firm.

According to documents filed with New York State Supreme Court, associate Aaron Brett Charney, who is homosexual, accuses Sullivan & Cromwell partner Eric Krautheimer of throwing a document at his feet and "instructing plaintiff to 'bend over and pick it up -- I'm sure you like that.' " Mr. Charney, who says he has audio tapes to back up his claims, also alleges he was the victim of a "fabricated" work evaluation that falsely accused him of overbilling clients. And, according to court documents, partner Alexandra Korry falsely accused Mr. Charney of "carrying on an 'unnatural' homosexual relationship with another male S&C associate" and demanded he be terminated.

Sullivan & Cromwell said in a statement it previously investigated the assertions and "categorically denies Mr. Charney's allegations of discrimination and retaliation."

The Globe and Mail, Canada, January 17, 2007