Kodak (a logo change won't save them) sued

Discussion in 'Digital Photography' started by Rich, Mar 31, 2006.

  1. Rich

    Rich Guest

    from Forbes.com;

    Looks like Kodak is trying for mediocrity's top slot. No DSLRs, sell
    more cheap P&S
    Walmart specials than any other company and STILL loses money! And
    they gave
    their CEO a $10M bonus...

    Now this:

    New York -

    A former Eastman Kodak employee is bringing a lawsuit against the
    photography giant for wrongful termination, alleging the company fired
    her for blowing the whistle on a cost-cutting plan that would mislead
    customers and damage their photos.

    Maya Raber, a director of engineering since 2002 at Kodak's (nyse: EK -
    news - people ) popular EasyShare Gallery, an online photo-sharing
    site, says the plan called for compressing uploaded photographs and
    would lead "customers to believe their photos were being optimized,
    when in fact they were being irreversibly damaged," according to the
    legal complaint filed in Alameda County, Calif., yesterday. More than 1
    billion photos are stored on the EasyShare site.

    All digital cameras use some form of compression to store photos, but
    excessive compression can affect the quality of the image, making it
    grainy and lacking in detail. Compression saves money because such
    images are much smaller and thus much cheaper to store. A compressed
    photo cannot be restored.

    "Instead of making sure you delight your customers, I sensed a very
    arrogant approach saying, 'We're going to save the money, and we're
    going to take advantage of the fact that customers aren't going to
    understand,' " Raber says. "I thought that it was morally deceiving,
    morally wrong."

    Kodak flatly denies the allegations. "We can assure you that Ms.
    Raber's accusations are completely false," says Kodak spokeswoman Liz

    "We have not compressed images that are stored in the Gallery without
    our customers' knowledge," Scanlon adds. "Kodak has acted in a manner
    that is consistent with our corporate policies and ethics. We will
    vigorously defend ourselves against all claims to the contrary."

    Raber claims that after having been an exemplary employee at the
    company for more than three years, she was abruptly fired in August
    2005 following her continued opposition to the compression plan.

    Raber says her team of engineers protested after being told to create a
    compression algorithm that would have affected all the images stored
    online at the EasyShare Web site. She further states that at least one
    employee resigned after being told by one Kodak executive that
    "objection to the project will be noted" and another stated that "this
    is not a democracy, the project goes on."

    After composing a whistle-blower report to give to Kodak's vice
    president and other executives in mid-July, Raber was told in August
    her job had been eliminated due to restructuring, she says. No one else
    was laid off or dismissed.

    Ultimately, Raber says the compression project did not go forward,
    although she claims the EasyShare Gallery "Easy Upload" option
    (currently on the site) does in fact compress photos without directly
    informing users.

    Raber's attorneys are suing for wrongful termination/retaliation in
    violation of public policy, intentional infliction of emotional
    distress, and breach of implied covenant of good faith and fair dealing.
    Rich, Mar 31, 2006
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  2. Rich

    Stacey Guest

    Isn't America great! The CEO loses the company money and gets a 10mil
    bonus.. Wonder how many jobs his bonus cost the company?
    Stacey, Mar 31, 2006
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