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In the second amended complaint, Sheth alleges that NAR violated Title VII of the Civil Rights Act of 1964 and the Illinois Human Rights Act. These claims are in addition to her discrimination claims and her breach of contract claim.
NAR argues that the allegations set forth in the second amended complaint are “implausible,” and that she is asking the court to “indulge in speculation.”
“For the third time, Plaintiff relies on arguments that are either waived or based on conjecture, and it has become entirely transparent that Plaintiff is unable to plead the facts necessary to substantiate all but one of her claims,” the filing states. “The Second Amended Complaint, like the Amended Complaint, offers a litany of allegations against NAR that purportedly occurred during Plaintiff’s employment. Plaintiff and NAR, however, executed a settlement agreement and general release on December 19, 2019 , after her employment was terminated, in which Plaintiff “release[d] [NAR] from any and all claims arising out of [her] employment with [NAR].”
NAR is asking the court to again dismiss all but Sheth’s breach of contract claim. In the motion, NAR alleges that Sheth fails to state a claim and as such those parts of the suit should be dismissed with prejudice.
NAR argues that Sheth “fails to allege the requisite causal link between her alleged protected activity and the purported adverse employment action, and (ii) with specific regard to the text messages, Plaintiff fails to sufficiently allege an agency relationship to establish that NAR committed an adverse employment action.”
The trade group also argues that Sheth’s IHRA claim should be dismissed because it does not toll the limitations period.
Originally filed in June 2024, Sheth alleges that NAR retaliated against her for reporting alleged sexual harassment. Additionally, Sheth, who is of Indian descent, added context to her claim that NAR retaliated against her for accusing senior vice president Donna Gland, talent director Linda Russell and chief legal counsel Katie Johnson of discrimination in her second amended complaint.
In August 2023, The New York Times published an exposé that brought to light several allegations of sexual harassment and a “culture of fear” at NAR. Many of these allegations were aimed at then-NAR president Kenny Parcell, who shortly thereafter chose to step down from the role.
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