Root fires chief financial officer weeks after marketing lawsuit

"Mr. Bateman's termination was not related to the Company's financial or operating results or to any disagreements or concerns regarding the Company's financial or reporting practices."

Root said in the filing

Struggling auto insurer Root has fired its chief financial officer less than a year after hiring him.

Root didn't say why the company dismissed Robert Bateman, but said in a regulatory filing on Wednesday that he violated company policies. He isn't eligible for any severance pay, per his employment agreement with the company.

"Mr. Bateman's termination was not related to the Company's financial or operating results or to any disagreements or concerns regarding the Company's financial or reporting practices," Root said in the filing.

Bateman, an insurance veteran, joined Root last April. He drew a base salary of $500,000 and was eligible for a bonus of up to 100% of his base salary, according to regulatory filings. He also was eligible for stock awards.

The dismissal of Bateman comes weeks after Root sued its former chief marketing officer, Brinson Caleb "BC" Silver in federal court, accusing him of taking $9.4 million from the company as part of a "brazen and sophisticated scheme" that included spending that money on luxurious homes in Florida and California.

The dismissal of Bateman and the lawsuit come as the company works to turn a profit more than two years after going public in October 2020. The company has had two rounds of job cuts in the past year.

The company's shares have tanked since going public, and the company now has a valuation of about $70 million. At the time the company went public, reports pegged Root's value at about $6 billion.

Root has named Megan Binkley, 39, as its interim CFO and treasurer immediately. She became the deputy chief financial officer in November. Before that, she served as the company's chief accounting officer for three years.

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"Mr. Bateman's termination was not related to the Company's financial or operating results or to any disagreements or concerns regarding the Company's financial or reporting practices."

Root said in the filing