Starkey Foundation Employee Files Whistleblower Lawsuit

[marqualler]

Interesting news here from the Twin Cities, MN, as a former employee of one of the leading worldwide providers of hearing aids, Starkey Technologies, is suing the company for wrongful termination. The claim states that the Foundation has overstated the # of hearing aids provided around the world.

My opinion--this is the danger of large, private corporations whose main purpose of existence is to make a profit for its shareholders or stakeholders, holding the keys to important health initiatives. Like, for example, hearing. We can do the math that it is not in multimillion dollar companies' best interest to research for cures for hearing loss--it is better to maintain that status quo.

http://hearinghealthmatters.org/hea...foundation-hearing-aid-whistleblower-lawsuit/

The company responded to the allegations:

 

[attheedgeofscience]

I have previously posted the following article regarding hearing aid manufacturers aggressive business tactics:

www.abc.net.au/radionational/programs/backgroundbriefing/2014-11-30/5920176

It is not pretty reading...!

 

[Michael2013]

Like, for example, hearing. We can do the math that it is not in multimillion dollar companies' best interest to research for cures for hearing loss--it is better to maintain that status quo.

Speaking as someone with significant hearing loss and hearing aids, I am not looking for hearing aid manufacturers to solve that problem. That's not their core strength and never will be. They should continue to focus on developing and improving the technology to help those who are hearing impaired. Biological researchers and other companies will focus on the cures.

I have previously posted the following article regarding hearing aid manufacturers aggressive business tactics:

www.abc.net.au/radionational/programs/backgroundbriefing/2014-11-30/5920176

It is not pretty reading...!

Eh. You can find a bad article about pretty much anybody on the internet these days. My experience with audiologists have always been great, and never high pressure sales situations.

It's strange... the article makes it sound like its a big secret that audiologists are paid based on sales of devices. Honestly, how can anybody who actually visits an audiologist think otherwise? Hearing tests are free. Checkups and adjustments are free. The only time I ever paid my audiologist is when I bought hearing aids.

-Mike

 

[marqualler]

Speaking as someone with significant hearing loss and hearing aids, I am not looking for hearing aid manufacturers to solve that problem.

Well, true, nobody is asking them to, and of course they wouldn't, because like you said, solving hearing loss is not their core strength--their core strength is building hearing aids.

It is, however, pretty troubling that the one of the largest manufacturers is being accused of skewing their donation numbers.

 

[Atlantis]

Speaking as someone with significant hearing loss and hearing aids, I am not looking for hearing aid manufacturers to solve that problem. That's not their core strength and never will be.

Problem is, my friend, hearing aid manufacturers have been accused of slowing down hearing loss/tinnitus research because they would lose their businesses if cures and treatments came available. How about that?

 

[Michael2013]

It is, however, pretty troubling that the one of the largest manufacturers is being accused of skewing their donation numbers.

Yeah, it will be interesting to see what comes of all of it. It is a private company and there has been ongoing family drama within this company for months now. Makes me wonder what the facts really are and how much of it is just retaliation for other things like this:

"Lawsuit alleges Starkey execs were fired in battle with CEO's stepson.

A lawsuit filed Friday alleges that Starkey Laboratories Inc. CEO Bill Austin fired President Jerry Ruzicka and seven other employees earlier this month in retaliation for Ruzicka's refusal to promote Austin's stepson.

The lawsuit, filed by former Operations Vice President Keith Guggenberger, alleges breach of contract, defamation of character and spying. It accuses Austin of creating a hostile and vindictive work environment and is seeking damages in excess of $10.9 million."

http://www.startribune.com/fired-executive-sues-starkey-hearing-technologies/330484531/

Problem is, my friend, hearing aid manufacturers have been accused of slowing down hearing loss/tinnitus research because they would lose their businesses if cures and treatments came available. How about that?

Sure, I've heard those accusations. I've never seen any reliable proof of it.

 

[marqualler]

Yeah, it will be interesting to see what comes of all of it. It is a private company and there has been ongoing family drama within this company for months now. Makes me wonder what the facts really are and how much of it is just retaliation for other things like this:

"Lawsuit alleges Starkey execs were fired in battle with CEO's stepson.

A lawsuit filed Friday alleges that Starkey Laboratories Inc. CEO Bill Austin fired President Jerry Ruzicka and seven other employees earlier this month in retaliation for Ruzicka's refusal to promote Austin's stepson.

The lawsuit, filed by former Operations Vice President Keith Guggenberger, alleges breach of contract, defamation of character and spying. It accuses Austin of creating a hostile and vindictive work environment and is seeking damages in excess of $10.9 million."

Sure, but the lawsuit in the original post has nothing to do with the Starkey execs who were fired. We'll let the facts come out as they do, but on the surface, fired execs, an FBI investigation on those execs, and a whistleblower lawsuit don't reflect very well on the company itself, regardless of what their PR department says.

 

[Michael2013]

Sure, but the lawsuit in the original post has nothing to do with the Starkey execs who were fired.

Considering one of the fired execs also just filed a whistleblowing lawsuit, I'm not sure anything can be said with certainty.

"Starkey Hearing Technologies is now being sued by former president Jerry Ruzicka, months after the FBI raided his home. Ruzicka filed the lawsuit on Thursday, Jan. 14, naming Starkey and CEO Bill Austin in claims of wrongful termination, defamation, whistleblowing and unpaid salary."

We'll let the facts come out as they do, but on the surface, fired execs, an FBI investigation on those execs, and a whistleblower lawsuit don't reflect very well on the company itself, regardless of what their PR department says.

Yeah, it's a giant mess that's for sure! Definitely going to damage the company long term.

 

[marqualler]

"Starkey Hearing Technologies is now being sued by former president Jerry Ruzicka, months after the FBI raided his home. Ruzicka filed the lawsuit on Thursday, Jan. 14, naming Starkey and CEO Bill Austin in claims of wrongful termination, defamation, whistleblowing and unpaid salary."

Where are you seeing this information? Would you mind posting the link to it? It must have been issued today if the new (third!) lawsuit was filed Thursday, Jan. 14 (yesterday).

 

[Michael2013]

Where are you seeing this information? Would you mind posting the link to it? It must have been issued today if the new (third!) lawsuit was filed Thursday, Jan. 14 (yesterday).

Sorry, forgot to add the link! It was updated 4 hours ago though it's short with few details. It does add this little detail about a rival company:

"Because Starkey is a private company, there was little explanation of the firings until a civil lawsuit filed last October suggested that Austin believed the executives were plotting to form a rival company."

http://www.fox9.com/news/business/74842026-story

 

[marqualler]

Sorry, forgot to add the link! It was updated 4 hours ago though it's short with few details. It does add this little detail about a rival company:

"Because Starkey is a private company, there was little explanation of the firings until a civil lawsuit filed last October suggested that Austin believed the executives were plotting to form a rival company."

http://www.fox9.com/news/business/74842026-story

Interesting. Like I said, surely all will come out in due time. I just found what the lawsuit in the original post alleges seems to be unrelated to any of the family executive stuff. Sure, there could be some tie-ins and interoffice politics, but it is the only piece of this that seems to come out directly about practices going on at Starkey. And as I opined, it certainly wouldn't surprise me if that were the case, given how the Foundation obviously benefits the company, etc., and certainly the variety of accusations after the fact seem to lead to a "where there's smoke, there's fire" situation regarding interoffice politics. Of course every company has politics, but not every company has things of this nature happen.

I actually came across the lawsuit in my original post after I was looking at a job posting for their CFO role. After I had recalled seeing some news about it and then reading all of this information, the job posting is not too attractive.

 

[Michael2013]

I actually came across the lawsuit in my original post after I was looking at a job posting for their CFO role. After I had recalled seeing some news about it and then reading all of this information, the job posting is not too attractive.

LOL... yeah, long term job security does not seem to be a selling point right now.

 

[marqualler]

More about the suits and the details can be found here. (Firewall beyond 10 articles in a month, from the Star Tribune.)

Tinnitus Talk members may recognize this room as "the quietest room in the world"--pictured below is the filer of the second whistleblower lawsuit, Jerry Ruzicka:

Starkey Laboratories and its ousted president traded accusations of serious improprieties on Friday, escalating a conflict that first came into public view when the hearing-aid maker abruptly fired eight top people in September.

Former President Jerry Ruzicka alleged in a whistleblower lawsuit that Starkey owner Bill Austin or his family members diverted millions in company funds for personal use, violated U.S. tax and customs laws, falsified records and sold hearing aids labeled new that were made from old components.

"Austin routinely pressured manufacturing personnel to use defective microphones and speakers, and other used or defective parts for hearing aids" sold to the company's foundation, the lawsuit said.

Starkey's attorney shot back, claiming that Ruzicka stole millions from the company.

 

[jss]

Problem is, my friend, hearing aid manufacturers have been accused of slowing down hearing loss/tinnitus research because they would lose their businesses if cures and treatments came available. How about that?

In the health industry thats how big business works. Actually curing anything would diminish profit margins. Capitalizing on others sickness is where the profit is. Look what happened to Harry Hoksey, Rene Caisse or Max Gerson.

The hearing aid industry has little or no interest in "preventing" hearing loss, much less tinnitus. We can't look to them for any help beyond very expensive white noise generators.

 

[Atlantis]

We can't look to them for any help beyond very expensive white noise generators.

Would it not be great if there was more competition? The cost to produce those devices must be very little, but they sell them for thousands. The profit margin is atrocious.

I'll look up the names you mentioned, thank you!!