UPDATED 04:56 EDT / FEBRUARY 27 2015

Scandal at Microsoft: a $22,000 expenses bill in South Korean Hostess Bars and the now former managers who questioned it

expensesTwo managers say they were forced out of their jobs at Microsoft after they questioned a $22,000 expenses claim that they believed could have partly been to pay for sexual services at a hostess bars in South Korea, it was reported.

The two former employees, George Engstrom and John Stockwell, have filed a lawsuit in Seattle state court. The lawsuit states that another Microsoft employee (unnamed) had visited hostess bas in South Korea with potential clients. In the lawsuit Stockwell claims that the employee had told him that he had indeed visited the said bars, but the expenses bill had not involved services related to sex.

However, once an initial internal investigation had taken place in 2011 Stockwell was reportedly told to leave the matter alone. After further disagreements between Stockwell and Microsoft relating to Stockwell allegedly being told to raise the employer’s performance review, Microsoft allegedly transferred the employee to another department after he was given an increased performance rating.

Engstrom and Stockwell claim they were then effectively forced out of the company after being taken off a Bing search engine project, and later having other projects closed. The pair added that in 2013 they were given Microsoft’s lowest performance rating of 5, which resulted in their dismissal.

Both men are suing Microsoft for damages pertaining to emotional stress, as well as lost pay and benefits. The trial will commence March 7th, 2016. In an email statement reported by Reuters Microsoft stated, “We’ve carefully reviewed this case and found nothing to substantiate the speculation in the complaint or the allegation of retaliation, and we’re confident a court will agree with us,” adding, “We always encourage employees to raise concerns that they may have, and take such reports seriously.”

Photo credit: Whatleydude via photopin cc


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