Former Employee’s Lawsuit Against Blockchain Industries Inc and CFO Allowed to Proceed in Part

On Wednesday, August 21, 2024, the US District Court for the Southern District of California issued an order granting in part and denying in part a motion to dismiss a labor lawsuit involving alleged wrongful termination and retaliation.

The case was filed by Daniel Brannon White against his former employer Blockchain Industries, Inc. and several associated individuals, including Robert Kalkstein, the company’s Chief Financial Officer. White claims he was terminated in 2019 after blowing the whistle on misconduct uncovered during an internal investigation and filing unpaid wage complaints.

The court order addressed Kalkstein’s amended motion to dismiss various claims in White’s complaint. It granted the motion to dismiss for three claims, finding California labor law does not allow for individual liability on one claim, and two others involved a settlement agreement Kalkstein was not party to.

However, the court denied dismissing two other claims, as it could not consider factual evidence at this stage of the proceedings. It also allowed a retaliation claim under New York labor law to move forward.

While dismissing some claims, the court granted leave for White to amend the fraud and conspiracy allegations against Kalkstein to provide more specifics of his alleged behavior.

Please contact BlockTribune for access to a copy of this filing.