A female former executive for an Irvine-based risk management company has settled her lawsuit she filed against her ex-employer in which she alleged she was subjected to sexual harassment and a “cutthroat culture” of pressure to produce results.
Ronda Cruz’s Los Angeles Superior Court lawsuit, brought against CorVel Corp. included allegations of whistleblower retaliation, harassment, wrongful discharge, intentional infliction of emotional distress, defamation and failure to accommodate and engage in the interactive process.
During a case management conference on Wednesday, attorneys told Judge Peter A. Hernandez that the case was resolved during mediation. No terms were divulged. Cruz sought unspecified compensatory and punitive damages.
In their previous court papers, CorVel attorneys denied Cruz’s allegations, called them “unreasonable” and “frivolous” and said they were barred by the statute of limitations.
According to Cruz’s suit filed in August 2024, the CorVel workplace culture was “very cutthroat in the sense that money and profits were more important than anything else, including employee health, safety and following the law.”
Cruz was hired in July 2012 as a claims adjuster handling indemnity claims for Prime Healthcare and worked her way up the corporate ladder to become vice president of claims in 2017 and to area vice president of Southern California the next year, according to the suit.
Women were not typically given the respect they deserved at CorVel, the suit stated.
“Plaintiff had several instances over her tenure there … where she was subjected to sexist and sexually based comments and actions,” the suit alleged.
On a work trip in which her husband attended, comments were made about Cruz’s anatomy that were typical of the way women were often objectified, according to the suit, which further stated that females were expected to “toe the company line if they wanted promotions.”
But when Cruz refused to turn a blind eye to what she believed was illegal or unethical conduct, the path was set for her wrongful termination, according to her complaint.
As an example, Cruz fought for commissions for two female employees who were on maternity leave and could possibly earn bonus pay, which made upper management see the plaintiff as a problem employee, the suit stated.
During a 2022 company meeting, Cruz was discussing workplace diversity when a Caucasian man said, “I can’t help the way I came out of my momma’s womb,” the suit stated.
Cruz also had to take time off for serious health issues and as her condition worsened, she told her superiors that she would need to schedule a hysterectomy as well as other surgical procedures, according to the complaint, which further stated that the plaintiff continued doing her job well despite her medical problems.
However, Cruz was told by a CorVel regional vice president along with a human resources executive during an August 2023 meeting that she was being terminated due to her “interactions with leadership,” the suit stated. Told that a condition for rehiring was that she sign a severance and release of future claims, Cruz, who is in her early 50s, declined to do so, the suit further stated.
CorVel’s alleged insinuations that Cruz lost her job due to misconduct or incompetency initially made it hard for her to get another job elsewhere in Southern California, according to the suit.