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Damien Navarro, the former executive director of Outfest, has initiated legal action against the organization, claiming defamation, harassment, and discrimination. Filed on Friday in Los Angeles Superior Court, Navarro's lawsuit asserts he encountered systemic racism and retaliation during his tenure, which contributed to the downfall of the long-standing LGBTQ film festival.

Navarro, who assumed his role in 2019, alleges that he repeatedly alerted Outfest's board of directors regarding the organization’s precarious financial state. Despite his warnings, he claims the board failed to take necessary action, ultimately leading to significant financial distress. He further contends that certain board members undertook a campaign to discredit and oust him in retaliation for raising concerns about discriminatory practices.

Outfest, which has faced a myriad of challenges recently, laid off almost its entire staff last year as an effort to unionize unfolded. The film festival, once a staple in the independent cinema community, postponed its major fundraising event, the Legacy Awards, amid ongoing financial strain. In a statement, the organization vehemently denied Navarro's "baseless and malicious claims," maintaining that the decision to replace him was in Outfest's best interest.

The lawsuit details Navarro's efforts to navigate Outfest through financial woes, including managing over $250,000 in debt and the impacts of the COVID-19 pandemic. Despite initially eliminating debt and increasing revenue, Navarro indicates that persistent budget deficits and cash flow issues plagued the organization, which eventually led to layoffs. He asserts the board consistently ignored his financial reports and advisories, even as the organization's reserves dwindled.

Compounding the internal strife, Navarro's lawsuit outlines numerous clashes with board members over issues of alleged harassment and discrimination. He claims that board members, including Alexis Fish and Valerie Stadler, retaliated against him by spreading false rumors, excluding him from key meetings, and launching investigations based on unsubstantiated allegations.

Additionally, Navarro accuses board members of self-dealing, citing attempts by Fish and Stadler to promote films in which they had personal financial interests at Outfest. In August, the board voted not to renew Navarro's contract, which he took as an act of unlawful discrimination and retaliation.

Responding to accusations that mismanagement under his leadership led to Outfest's collapse, Navarro defends his record and transparency, emphasizing that all financial dealings, including a controversial payment for actor John Waters' Hollywood Walk of Fame star, were carried out with the board's full knowledge and approval. He continues to stress that claims of concealed debts and improper use of funds are entirely unfounded.