Cuban, Mavs on legal hot seat after allegations

Former employee accused of sexual harrassment but kept on the staff

It took Under Armour less than two months to part ways with a high-profile employee, Terdema Ussery, after a co-worker complained of sexual harassment.

The Dallas Mavericks kept Ussery employed for almost two decades at the highest level despite multiple complaints of his behavior to human resources, according to a Sports Illustrated investigation.

Owner Mark Cuban and the Dallas Mavericks became the latest high-profile entity caught in the #MeToo movement as Sports Illustrated painted a disturbing pattern of sexual misconduct within the organization. Ussery, the former team president, reportedly told a female employee that he envisioned her being “gang banged” over a weekend, among other similar episodes.

Ussery denied such actions to SI, but these types of complaints were brought to the Mavericks’ human relations department by multiple female employees. After Under Armour received a complaint about Ussery, they removed him.

“It really shows two different approaches in Corporate America,” said Jason Smith, a Fort Worth-based employment lawyer who won the first sexual harassment jury verdict in Tarrant County in 1999. “One is we’re not going to stand for sexual harassment (like Under Armour). The other is we’re going to let those in power get away with it and turn a blind eye (like the Mavericks).

“The fact that Under Armour, after only a few months, said we’re not doing this and, by comparison, what the Mavs did? It’s really going to put the Mavericks on the legal hot seat.”

Employers, Smith said, are legally responsible if they allow a sexually hostile work environment. The statute of limitations are put on hold if there is a continuance of such an environment. The Mavericks, it could be argued, allowed for a continuance of such an environment. Ussery worked for the team almost two decades.

Another Mavericks employee, Mavs.com writer Earl K. Sneed, had multiple domestic violence incidents and remained employed until this week, according to the report. One of the incidents occurred with another team employee, whom he was dating at the time.

Employees generally have 300 days to file a sexual harassment complaint with the Equal Employment Opportunity Commission (EEOC). If any employees were subjected to touching, as has been accused with Ussery, there is a two-year statute of limitations.

Rodney Klein, the outreach and education manager for US Equal Employment Opportunity Commission, declined comment on the Mavericks situation. But the continuance of that sort of environment, as Smith said, could put the Mavericks in legal trouble.

“It appears that the Mavericks didn’t have an effective program to prevent sexual harassment in the workplace,” Smith said.

The SI report provides disturbing issues on every level, particularly with Ussery and Sneed. The Mavericks have tried to be as proactive as possible since they were made aware of the report. They issued a statement before the SI story dropped, and then announced an independent internal investigation to examine the issues. The Mavericks hired attorneys Evan Krutoy and Anne Milgrim to lead the investigation.

In a statement, the team said, “They will be holding confidential interviews with all Mavericks staff members, as well as previously employed individuals who wish to speak, to help better understand and fix the issues.”

It’s an issue that has become more prevalent throughout the country. The #MeToo movement has swept the nation, exposing high-profile names ranging from Hollywood mogul Harvey Weinstein to comedian Louis C.K. to TV host Matt Lauer to Senator Al Franken.

“Our society is getting a wake-up call on taking seriously how women are mistreated in the workplace,” Smith said. “The Mavericks, as an organization, appear to have fallen way short. All they can do now is take serious steps to improve their environment.

“Sexual harassment is a big problem of employers because it gets in the way of their productivity. No wonder the Mavericks have been losing the last couple of seasons with this kind of distraction in their back office.”

Cuban admitted in an ESPN interview that he made a “horrible mistake” in keeping Sneed employed after finding out of his domestic violence history. He refused to comment on the Ussery allegations.

Despite any possible legal issues, this is a significant blow to Cuban and the Mavericks from a reputation standpoint alone. Cuban can likely forget about any possible plans to run for president in 2020.

“I think it’ll depend if this is a oneoff or if it was a cultural endemic,” Dallas-based attorney Rogge Dunn said. “People will say, ‘Hey, when he ran a big, important billion-dollar enterprise, he was asleep at the controls.’ Running for office and the presidency is about leadership. If you can’t lead a company, how are you going to lead the country?

“If this is one-off? Maybe. But if other people have the guts to come forward, I think he’ll be in for real reputational risk.”

Both attorneys, Smith and Dunn, understand the precarious situation employees can sometimes put their employer in. Cuban might have had good intentions by giving Sneed a chance to get his issues in order through counseling. The easiest thing for an employer to do, of course, is cut ties.

“I think the real issue isn’t whether they give him a second chance or not, it’s if the organization is going to send a message that they have a strong stance against sexual harassment, take action immediately upon it occurring,” Smith said. “Not so much, what an employee brings from their personal life, so much as it is what the company does to prevent it in the workplace.”

Cuban appears to be determined to get it fixed. He’s admitted he’s been “embarrassed” by the entire situation. There could be more fallout, too. Multiple emails to ABC regarding Cuban’s status on “Shark Tank” were not returned. Sponsors might not want to be associated with this type of organization. And the NBA said it’s going to “closely monitor the independent investigation into this matter.”

“This alleged conduct runs counter to the steadfast commitment of the NBA and its teams to foster safe, respectful and welcoming workplaces for all employees,” the league said in a statement.