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Lawsuit alleges Ibotta fired senior executive for taking medical leave, violating FMLA, ADA

ST. LOUIS RECORD

Saturday, January 4, 2025

Lawsuit alleges Ibotta fired senior executive for taking medical leave, violating FMLA, ADA

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ST. LOUIS — A former senior executive of Ibotta has filed a lawsuit accusing the company of illegally discriminating against him after he took medical leave in 2023.

Daniel Midden, who was employed as vice president of client partnerships, claims Ibotta, a popular mobile app for cashback rewards, violated the Family and Medical Leave Act, the Americans with Disabilities Act and the Missouri Human Rights Act when it terminated him shortly after he returned from medical leave, according to a complaint filed earlier this month in U.S. District Court for the Eastern District of Missouri.

The lawsuit alleges retaliation for his use of FMLA and disability discrimination related to his anxiety diagnosis.

Midden, who had been with Ibotta since 2020, was diagnosed with anxiety in June 2023, which he claims substantially limited his ability to sleep and concentrate. 

Following his diagnosis, he requested and was granted FMLA leave starting June 12, 2023, according to the suit. 

Before his leave, Midden had been a high-performing employee, even securing the largest contract in the company's history just days before taking leave. 

He had received numerous accolades for his work, including praise from the company’s CEO for his role in securing major contracts.

However, the lawsuit alleges that upon his return to work on Aug. 14, 2023, Midden was subjected to discriminatory treatment by his supervisors, including exclusion from important leadership meetings and reassignment of responsibilities. 

According to the complaint, he was the only vice president who did not report directly to senior leadership or attend key meetings, which impacted his ability to perform his job effectively.

In his complaint, Midden notes several instances of disparate treatment, such as being cut off from communication with major client accounts, including Kraft Heinz, and being excluded from meetings where critical decisions were made. 

Despite his previous success and positive feedback, he was allegedly informed during a performance review on Sept. 29, 2023, that he had not met expectations, according to the suit.

The review included claims about missed deadlines and poor performance on several projects, including a presentation made while he was on leave, the complaint states.

Midden claims that the criticisms were fabricated or based on misinterpretations of events that occurred while he was on FMLA leave. 

Midden points to positive feedback from supervisors on the same presentations that were later cited as examples of poor performance. 

For instance, he alleges that had received a call from Ibotta's chief revenue officer after presenting on a company-wide call in June, where he was praised for his achievements. 

Midden also pointed to a project reassigned to another vice president during his leave that was used as evidence of poor performance, despite Midden’s lack of involvement during his absence.

The lawsuit further claims that when Midden raised concerns about his treatment, both during and after his performance review, his complaints were ignored. 

On Oct. 5, 2023, just days after expressing his concerns, he was terminated from his position at Ibotta, the complaint states.

Midden argues that the company’s decision to fire him was pretextual, asserting that the real reason for his termination was his use of FMLA leave and his disability. He claims that the company retaliated against him for taking time off to address his health needs, a violation of both the FMLA and ADA.

Midden is seeking damages for lost wages, emotional distress and other compensatory damages resulting from what he alleges was illegal discrimination and retaliation by Ibotta. He is represented by Ross A. Davis of the Law Office of Ross A. Davis in Clayton.

The plaintiff's attorney did not respond to a request for comment before publication.

U.S. District Court for the Eastern District of Missouri case number: 4:24-cv-01619

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