After a period of turmoil and internal strife, Outfest has been sued by its former manager for defamation, harassment and discrimination.
Damien Navarro, in a lawsuit filed Friday in Los Angeles Superior Court, said he repeatedly warned Outfest’s board of directors, many of whom blamed him for its collapse, about its dire financial situation. of the organization but refuses to act. He says that some board members started a campaign to discredit him and remove him as the head of the film festival in retaliation for expressing prejudice.
“As the first person of color to headline Outfest, I expected an inclusive and inclusive space,” says Navarro. “Instead, I encountered racism, selfishness and revenge that destroyed not only my leadership but the purpose of the organization.”
In a statement, Outfest denied the “baseless and malicious reports.” It added, “Unfortunately, during Mr. Navarro’s leadership, the Outfest Board decided that it was in the best interest of the organization to bring in a new director.” We remain determined to make this decision the best course of action for the organization and look forward to resolving this matter in legal proceedings.”
Outfest — the long-running Los Angeles LGTBQ festival once seen as a fixture on the indie cinema circuit — collapsed last year when it laid off nearly its entire staff after some announce merger plans. Amid the ongoing financial turmoil, it postponed the Legacy Awards, its marquee gala fundraiser that traditionally sees an array of Hollywood’s top talent honored. This is consistent with Navarro, whose contract was not renewed last year, stepping aside for a vacation, he said. Hollywood Reporter was to allow a “full, impartial investigation” into the concerns he raised about the discrimination and harassment he was allegedly subjected to by several board members.
In an email to donors sent in October, Outfest management said the situation was “serious” as they cited poor management.
“Recently the Board of Directors was forced to take over the day-to-day operations of the organization and we discovered many debts that were hidden from the Board,” the message said, before adding that “Outfest is in danger fundraiser urgently needs to raise $750,000.”
In the lawsuit, Navarro argues that the email tainted him by saying there were undisclosed debts hidden on the board, making him a “pariah in the industry.” He says Outfest’s dire financial picture began long before he took over as executive director in 2019 and has repeatedly asked the board to address these issues, only to be made a “scapegoat for [its] your weakness.”
The lawsuit says Navarro inherited an organization with more than $250,000 in debt and years of declining membership and ticket sales, exacerbated by several unforeseen factors, including the COVID-19 pandemic, costs more due to new California labor laws and rising costs of space. In his first 18 months as the head of Outfest, Navarro eliminated debt and raised significant revenue, he says. However, the organization faced a looming budget deficit (expected to reach $300,000 by March 2023) and cash flow issues that would require layoffs, according to the complaint.
But the board chose “to take no action despite the bad financial reports,” says Navarro. He points to the leadership’s refusal to reduce staff, allegedly to “avoid bad publicity” during the writers’ and actors’ strikes. At a March 2023 meeting, Navarro pressed the bankruptcy with enough funds to cover wages through May only to have them ignored, the lawsuit alleges. In a letter to the board he sent the following month, he wrote, “Outfest needs to carefully manage its expenses to meet its financial obligations,” according to the complaint.
“Navarro kept Board members informed of the organization’s finances every step of the way — the Board took no action to obtain receipts or reduce expenses,” wrote Rob Hennig, his spokesman. the law.
Board members’ duties at the organization include raising or donating at least $10,000 annually to Outfest. Navarro said most of the board had “repeatedly failed” to meet this limit, and board member Alexis Fish allegedly refused to raise money at all. Two years ago, only 30 percent of the board met the minimum requirement, which resulted in a budget deficit of about $500,000, the lawsuit says.
In addition, the complaint describes a series of conflicts between Navarro and several board members over alleged harassment and discrimination. In 2022, he raised many concerns about Outfest’s alleged discriminatory practices involving Latinos, as well as those that included him. This prompted board members, including Fish and Valerie Stadler — all of whom are named in the complaint — to launch a “retaliatory campaign” aimed at undermining his leadership, the lawsuit alleges. Some alleged examples: inciting workers against Navarro by spreading false rumors of his recent termination, excluding him from board meetings and conducting frivolous investigations into inappropriate behavior. This included an investigation into her husband, who is not part of Outfest, allegedly having an affair with an actress at one event and Navarro’s discrimination against female and LGBTQ employees. Black people. A third-party investigation into the incidents at Fromholz’s firm found no wrongdoing, Navarro said.
Navarro says: “Investigations against me were started because of baseless and vindictive accusations. “The firm found no evidence of discriminatory treatment on my part.”
The lawsuit alleges that the board failed to investigate Navarro’s allegations of discrimination or harassment.
Also detailed in the complaint are allegations of self-dealing by board members. Navarro said Fish repeatedly tried to secure screenings of films he was directly involved with and had a financial stake in Outfest, including a documentary about Susan Feniger despite her hired as a business development manager for a chef. In 2022, Stadler came to him to show the film in which he was the main producer on the opening night of Outfest. In response to the announcements, Navarro raised concerns about conflicts of interest.
In August 2023, the board voted not to renew Navarro’s contract as executive director “in a clear act of unlawful discrimination and retaliation,” the lawsuit says. He took a leave of absence in September, four months before his contract was due to expire.
Executive Director Christopher Racster is currently the sole employee of the organization.
In December, the Los Angeles Times reports that the collapse of Outfest was largely due to Navarro’s poor management. Responding to allegations made by anonymous sources that he arranged without board approval for the association to pay for John Waters’ star on the Hollywood Walk of Fame, Navarro said “there was never an agreement that was not approved” and that the agreement was made “openly with the knowledge of the board.”
He also denied allegations that he kept board members in the dark about the use of a $700,000 property gift received by Outfest. He adds: “All costs associated with the grant were properly documented and reported, and the board was kept updated on how the funds were being used. “Any reports of misuse or lack of transparency is not true, as all financial decisions are made based on Outfest’s goals and objectives, with the full oversight of the financial committee.”
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