Former Legence CMO Files Gender Discrimination, Equal Pay, and Retaliation Lawsuit

Former Legence CMO alleges she was paid substantially less than male executives, excluded from key leadership decisions, and terminated after raising concerns.

SAN DIEGO, CA, UNITED STATES, November 13, 2026 /EINPresswire.com/ -- A former Chief Marketing Officer who helped build Legence's marketing organization from the ground up and led the marketing and communications efforts supporting the company's IPO has filed a lawsuit against Legence Therma LLC, Legence Payroll Solutions, LLC, and Legence Payroll Advisory, LLC, alleging a number of claims, including gender discrimination, harassment and retaliation.

Karen Toor joined Legence in March 2022 as Vice President of Marketing and was later promoted to Chief Marketing Officer. According to the complaint, she was recruited specifically for her experience building brands and guiding companies through IPO transformations and was tasked with creating a unified marketing function for the company.

Ms. Toor is represented by Alreen Haeggquist and Clemency Condry of Haeggquist & Eck, LLP, a San Diego employment law firm, in a lawsuit filed in the United States District Court for the Northern District of California on November 9, 2026.

The allegations in the complaint have not been proven in court, and the defendants have not yet had an opportunity to respond to the lawsuit.

Toor Helped Build Legence's Brand and Marketing Organization

According to the lawsuit, Ms. Toor spent more than three years building Legence's marketing infrastructure, developing the company's unified brand identity, and helping prepare the organization for a successful public offering. The complaint alleges that within her first year, marketing initiatives under her leadership contributed to a 500% increase in website traffic, a 300% increase in job applications, more than $30 million in media exposure, and significant national media visibility for the company.

The lawsuit further alleges that despite these contributions, Ms. Toor was routinely excluded from strategic meetings, undermined by senior leaders, and treated differently than male executives. The complaint alleges that she was one of only two female executives and the only non-white female executive on the leadership team.

In February 2025, Ms. Toor allegedly discovered that she was being paid substantially less than male executives. According to the complaint, Ms. Toor earned a base salary of $279,000 while certain male executives earned substantially more, including executives receiving salaries exceeding $400,000 annually. After obtaining an independent compensation analysis, she formally raised concerns with company leadership regarding pay inequity.

"Karen Toor was recruited because of her expertise, promoted because of her performance, and entrusted with helping lead Legence through one of the most important milestones in the company's history. Yet despite delivering extraordinary results, she was paid substantially less than male executives, excluded from critical leadership decisions, and pushed aside after raising concerns about pay inequity. Equal pay is not optional, and retaliation against employees who speak up about discrimination is unlawful. We intend to pursue these claims through the legal process and seek accountability for the conduct alleged in this lawsuit," said Alreen Haeggquist, Managing Partner of Haeggquist & Eck, LLP.

Lawsuit Alleges Retaliation After Pay Equity Complaint

According to the complaint, after Ms. Toor complained about pay inequity in March 2025, Legence acknowledged the disparity but delayed correcting her compensation until after the company's September 2025 IPO. The lawsuit alleges that during that same period, the company removed her direct reporting relationship to the CEO, placed her under a newly created Chief Strategy Officer position, reduced her authority over budgets and decision-making, and excluded her from strategic discussions affecting her department.

Although Legence eventually increased her salary after the IPO, the complaint alleges that the company failed to remedy years of alleged underpayment and continued to marginalize her role. According to the lawsuit, Ms. Toor remained excluded from senior leadership discussions and strategic planning meetings despite serving as Chief Marketing Officer.

On January 21, 2026, Legence terminated Ms. Toor's employment, stating that her position was being eliminated. The complaint alleges she was the only executive terminated and that, five days later, the company posted a Vice President of Marketing position with responsibilities substantially overlapping those of her former role.

"The Equal Pay Act exists because compensation disparities are often hidden from the very employees affected by them. Ms. Toor did not discover the extent of the pay disparity until years after she had helped build Legence's marketing function and establish its brand. The lawsuit alleges that when she raised those concerns, the response was not correction, but marginalization and termination." said Clemency Condry, counsel for Ms. Toor.

Lawsuit Seeks to Hold Legence Accountable

The complaint asserts claims for gender discrimination, gender harassment, violations of the California Equal Pay Act, violations of the Federal Equal Pay Act, retaliation, and whistleblower retaliation under California law. Ms. Toor seeks damages for lost compensation, lost equity, emotional distress, attorneys' fees, and other relief authorized by law.

The case is pending in the United States District Court for the Northern District of California. [Complaint – CRD No. 202611-38239309] [Case 5:26-cv-13470]

About Haeggquist & Eck, LLP

Haeggquist & Eck, LLP is a nationally recognized leader in employment, consumer and shareholder rights law. Founded in 2008, the firm represents individuals in complex employment, discrimination, harassment, sexual assault, consumer, shareholder and civil rights cases. HAE is known for its trauma-informed legal model and its commitment to representing people in matters involving power imbalances, exploitation, systemic harm and institutional accountability.

HAE represents employees, consumers and shareholders in individual and class actions and has helped recover more than $1 billion in value since 2008. The firm handles a broad range of employment matters, including discrimination, equal pay violations, retaliation, wrongful termination, harassment and hostile work environments, whistleblower retaliation, disability discrimination, medical leave violations, sexual harassment, human trafficking and other civil rights matters throughout California.

Haeggquist & Eck, LLP is committed to standing up for employees, survivors, consumers and shareholders and holding employers and institutions accountable when their rights are violated.

To learn more about HAE, our attorneys, or our areas of practice, please visit haelaw.com.

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Aimee Lastrella
Haeggquist & Eck, LLP
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