A former employee has filed a lawsuit against pioneering engineering company Air Company Holdings, Inc., alleging unlawful termination in retaliation for whistleblowing activities. Dr. Stafford Sheehan accuses Air Company Holdings of firing him under false pretenses after he raised concerns about compliance and regulatory violations within the company.
According to the lawsuit, Dr. Sheehan co-founded Air Company Holdings in 2017 and served as its CTO until his termination on December 30, 2024. He developed technology that converts carbon dioxide and water into jet fuel, attracting interest from organizations like NASA and the Department of Defense. Despite his significant contributions, Dr. Sheehan claims he was dismissed after reporting various compliance issues to the company's board. He alleges that his dismissal was orchestrated to prevent him from exercising stock options worth tens of millions of dollars.
The complaint details several instances where Dr. Sheehan reported potential legal violations to key figures within the company, including CEO Gregory Constantine and Chairman Steven Jbara. Despite these reports, Dr. Sheehan asserts that no corrective actions were taken by the board members or management team. Instead, he was placed on administrative leave without proper notice and eventually terminated under the guise of "cause," which he contends is a mischaracterization intended to strip him of his stock options.
Dr. Sheehan is seeking reinstatement to his previous position along with compensation for lost wages and benefits due to what he argues is retaliatory conduct by Air Company Holdings under New York's whistleblower protection laws (N.Y.L.L § 740). Additionally, he demands damages for breach of contract related to non-statutory stock option agreements governed by Delaware law.
Representing Dr. Sheehan are attorneys Joni S. Jacobsen and Bina M. Peltz from Dechert LLP. The complaint was lodged in the United States District Court for the Eastern District of New York.