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Court records show Digital NEST settled former employee’s harassment and retaliation lawsuit after denying allegations

Good Times reported on September 29 that Digital NEST settled a 2020 lawsuit brought by a former employee. The plaintiff alleged that the nonprofit enabled a sexualized workplace, failed to address alleged misconduct by his supervisor and retaliated after he complained. Digital NEST denied the allegations. Court records show the parties settled in late 2021 and the case was dismissed with prejudice.

Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.

Donor relevance

Why this matters

The report raises donor-relevant questions about workplace oversight, complaint handling, litigation costs and whether governance or personnel safeguards changed after the case.

Attribution

Who reported or established this

The allegations were made by a former employee in a Santa Cruz County Superior Court lawsuit and reported by Good Times using court records.

Evidence limits

What remains unverified

No Halo has not established that the alleged misconduct or retaliation occurred, the settlement amount or terms, or what internal reviews and corrective measures Digital NEST completed.

Right of reply

Organization response

Digital NEST denied the allegations in its court response. Founder and CEO Jacob Martinez declined to comment for the September 29 report.

Classification

How No Halo records this event

Event type: Settlement. Current state: Resolved. No Halo preserves the current procedural state rather than treating every mention as a finding.

Published September 29, 2026 · Last verified October 1, 2026. See an error or a later outcome? Submit a correction or right of reply.