Court dismisses majority of claims made in discrimination suit against NAR

Four of the five claims made by former National Association of Realtors (NAR) project manager Roshani Sheth in her June 2024 lawsuit have been dismissed. 

Chicago-based U.S. District Court Judge Georgia N. Alexakis ruled on Tuesday that Sheth’s claims — including those of alleged retaliation under federal and state laws, discrimination, and tortious interference with prospective economic advantage — were to be dismissed with prejudice. Sheth’s breach of contract claim was allowed to continue. 

In her suit, Sheth claims that NAR retaliated against her for reporting alleged sexual harassment. 

Since her claims were dismissed without prejudice, Alexakis has given Sheth until May 13 to file an amended complaint in which she addresses the court’s concerns about her other claims. 

NAR filed a motion to dismiss the suit in July 2024. 

According to the complaint, Sheth began working for NAR in May 2014 and was terminated from her role at the trade group in October 2019.

Sheth stated in her complaint that her termination was due to discrimination and “in retaliation for filing an internal complaint of discrimination with senior vice president Donna Gland & talent director Linda Russell of Human Resources and separately, chief legal counsel Katie Johnson.”

While in her position at NAR, Sheth claims that she “met or exceeded” NAR’s performance expectations.

Sheth stated that she first complained of discrimination in June 2019. The legal filing noted that she reached a settlement agreement with NAR related to her formal complaints of unlawful discrimination and retaliation in December 2019.

According to the complaint, NAR engaged in “various acts of discrimination based on [Sheth’s] sex and national origin during her employment. These acts included but were not limited to sexual harassment, unequal terms and conditions employment and failure to promote.”

Sheth alleges that NAR engaged in “several acts of retaliation” after executing the settlement agreement. These alleged acts included a refusal to provide a neutral reference to prospective employers, and allowing or encouraging its employees to cyberstalk Sheth.

In the complaint, Sheth states that some of these employees sent her harassing and threatening texts, “including a text that included shorthand for ‘kill yourself’ and ‘rat.’’

A status hearing for the case is set for May 27. 

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.