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Branson accused of harassment

David Usborne
Wednesday 24 April 1996 00:02 BST
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A whimsically choreographed appearance by Richard Branson, dressed in an astronaut's suit on Times Square to open the New York flagship of his Virgin Megastore music chain, was rained upon yesterday by sexual harassment allegations lodged against him by a former employee.

Elizabeth Hlinko, a former public relations manager with his airline, Virgin Atlantic, filed suit against Mr Branson in a federal United States court last Friday, accusing him of making unwanted advances to her at a party at his British country home in May 1994, including grabbing at her breasts.

Ms Hlinko of New York is also accusing Mr Branson as well as a second defendant in the suit, David Tait, executive vice-president of Virgin Atlantic, of discrimination, suggesting that after the incident in England, she was gradually frozen out of the company and eventually forced to resign.

Mr Branson vowed yesterday to contest the suit. He told the Independent he had no memory of the alleged scene and said he hoped the suit would be thrown out by the courts. The party in question, he suggested, had been attended by his wife, his parents and "50 to 60 press people".

"Personally, I don't have any recollection of this and I don't think anybody will have any recollection of anything at all. People I have talked to have no recollection of it," he said, adding: "I am as confident as I can be that this will be struck out of the courts in a couple of months' time."

News of the lawsuit provided an awkward counterpoint to the extravaganza that played out on Times Square at noon yesterday. With the streets almost closed off and the pavements jammed with gawking tourists, the space-suited Mr Branson was lowered several storeys to street level on an inflated replica of the ball that is lowered in the square on New Year's Eve.

The bursts of nervous laughter from Mr Branson as the ball made its jerky descent were presumably out of fear for his physical safety than concern about about the lawsuit. But once inside the shop, Mr Branson was instantly questioned about Ms Hlinko.

Noting that lawyers for Ms Hlinko had publicised the suit on the day of the store's opening, he complained: "One of the problems of America is that people can file claims and then people read about them and it is very difficult to defend yourself and very quickly the damage is done." Mr Branson said he and his lawyers had rejected a request received three months ago from Ms Hlinko's lawyers for an out-of-court settlement.

Gary Ireland, Ms Hlinko's lawyer, was unrepentant about the suit's timing. "This behaviour cannot be tolerated," he said, referring to its core allegations. The court papers focus on the party and alleges that there, "in the presence of other employees and guests ... Branson made unwelcome advances to [Hlinko] by fondling and grabbing her breasts".

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