Former CityNet VP files suit

The former vice president of sales for CityNet Telecommunications has filed a wrongful termination suit in U.S. District Court, claiming she was fired in part because she is a woman.

In the lawsuit, Lauren Shapiro, said she was lured away in October 2000 from a 16-year career with Cable & Wireless, where she had risen to vice president of carrier sales, with the promise of a significantly higher salary than C&W was paying her. Though initially taking a significantly lower salary than her annualized compensation of $392,378 C&W was scheduled to pay her throughout 2000, Shapiro was told her pay package would include stock options and that many of the sales representatives working for her would be making around $300,000, according to the suit.

CityNet terminated Shapiro on October 24, 2001, saying it was a result of lack of sales.

Shapiro, however, claims she was taken off a key customer account because Mark Perkell, CityNet’s General Counsel, had advised the company that the customer was filled with “Texas good ol’ boys” and that CityNet would be better served if a man leading the sales team. Moreover, CityNet had drastically overstated its revenue potential and was farther away from generating revenue than it was publicly admitting, according to the suit. (CityNet does not generate money from municipalities but provides 5% of its gross revenue in exchange for access rights of way).

“To a certain extent, the city rights are worthless if they don’t materialize into anything,” said Avi Kumin, an attorney with Bernabei & Katz, which is representing Shapiro. “There are no customers who have stepped forward.”

A CityNet spokesman wouldn’t comment on the specifics of the suit but said it was without merit.

CityNet has yet to generate any revenue, the spokesman said, adding that it’s not a reflection on the company but a reflection on the overall telecom marketplace.