I think we have a problem. I am the HR manager of a small corporation. An ex-employee suddenly left for questionable reasons. He filed an ADA complaint with the EEOC. Our attorney assured us he had no case after speaking with the ex-employee’s supervisor. The EEOC found no probable cause, but the ex-employee sued us. NOW, 3 years after the employee quit, we have learned that the supervisor blatantly lied to us and the EEOC. He even lied on the initial federal answer to complaint. We have reason to believe that he still isn’t being totally truthful with us and we, along with our lawyer, believe that the ex-employee may have a case after all. What should we do? Hope for the best? Settle? What will happen in federal court when the lies are exposed?

Shouldn’t your lawyer have answers to these questions?

Yes she should and she does. However, the lawyer is not ours. She is employed by our insurance carrier. It is no secret that “occasionally” attorneys, insurance companies, and especially attorneys for insurance companies tend to only look at how they might be affected.
When I go to a doctor, unless for something routine, I always get at least a second opinion.

Unfortunately, this isn’t the place to get a second opinion.  First, it would be near impossible to provide any type of informed opinion with just a thumbnail sketch of the situation.  Second, these forums aren’t the place for providing that type of advice. 

I can say that it isn’t out of the ordinary for a manager to lie, particulary when he or she was involved in a questionable employment decision.  Sometimes it’s hard, if not impossible, to determine whether an employee is lying, but your lawyer should have made that determination when the initial investigation took place.  If it turns out that you should have know about the unlawful conduct, you may just have to face up to the liability.  Having said that, the decision to litigate or settle is for the insurance company to make—it’s their money on the line.

Patrick is right.  Your Company should seek a second opinion from another attorney, if you do not trust the advice of you current attorney. 
Assuming the facts you present are accurate, your supervisor may have exposed himself and/or the company to liability by falsifying government documents.  In addiiton, he has jepordized the integrity of the company’s defense and his own credibility as a fact witness.  These are just some of the issues that impact the quality of a defense and how it is presented to a jury.