The Royal Bank of Canada has been ordered to pay a steep financial penalty following a scathing court ruling concerning the wrongful dismissal of an investment adviser.

Judicial scrutiny revealed the institution conducted a backward investigation, arbitrarily deciding to terminate the employee first before assembling retroactive justifications to validate the move.

The costly defeat serves as a stern precedent, warning corporate employers nationwide that fabricating post-decision rationales during internal probes will yield severe courtroom consequences.