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David Davidar

Just days after announcing David Davidar was resigning from his post as CEO of Penguin Canada to pursue other endeavours, the company now says Davidar was "was asked to leave last month," and that a former employee has filed a sexual harassment suit against him.

The suit was filed Thursday by Lisa Rundle, according to a media release issued this afternoon by Yvonne Hunter, vice-president of publicity and marketing for Penguin Canada. The release says Davidar, 52, "was asked to leave the company last month" - he was named Canadian president in 2007 - "and his departure was announced Monday [this week]"

"Mr. Davidar will play no further role in the company," the release said.

According to the release, Rundle's employment was not terminated by Penguin "but rather she advised the company of her decision to leave after having declined to pursue other career opportunities with the organization."

Rundle has made claims with respect to Penguin Canada in her court filing, including wrongful termination.

The announcement on Monday of Davidar's departure sent shock waves through the publishing industry. Insiders worried his resignation signalled a pullback by Penguin from the Canadian book scene.

Davidar gave nothing away in an interview with the Globe and Mail after his departure was announced.

"I just felt I wanted to see if I could do something other than managing a company," Davidar, a native of India, said in the interview. He said he and his wife were planning to return to India to live.

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