Netflix says it is has filed a civil suit in California accusing former vice president of information technology operations Mike Kail of fraud and breaching his fiduciary duties, among other charges. According to Re/Code, the suit alleges that Kail, who left Netflix in August to become Yahoo’s chief information officer reporting to Marissa Mayer, collected kickbacks from vendors he helped connect to Netflix.
According to the suit, Kail arranged Netflix contracts with various IT companies and then accepted commissions between 12% and 15% from the fees Netflix paid the different companies, pocketing between $450,000 and $560,000 from 2012 to when he left the company last summer. Kail approved all payments that were made to vendors by Netflix.
Netflix contends in the suit that Kail likely received payments from multiple other companies during his time there. “Such benefits may have included, among other things, stock and/or gift cards.”