The City of South Fulton is embroiled in legal conflict as Karen Slaton-Dixon, its former finance director, pursues a lawsuit following her termination, alleging she was removed from her position for acting as a whistleblower on corruption within city government. Slaton-Dixon, who served from December 2021 to June 2023, contends her dismissal was retaliatory after she reported financial irregularities to the Fulton County District Attorney's Office. According to the lawsuit, which FOX 5 Atlanta summarized, Slaton-Dixon was never disciplined for her job performance before she raised concerns about "financial improprieties".

Slaton-Dixon claims that in the midst of her cooperation with the district attorney’s office on investigations, she was compelled to dismiss an employee who reported procurement fraud—but not without expressing her objections; she also flagged improper invoicing practices and payment of invoices among city departments. Further digging by Slaton-Dixon allegedly uncovered $525,000 missing from a police confiscated asset fund, a serious issue she brought to the FBI's attention and then relayed to city officials as mentioned in The Atlanta Journal-Constitution. However, mere months after these events, she was terminated by interim city manager Sharon Subadan on May 12, 2023.

Subadan has not commented directly on the lawsuit, and city Public Affairs Director Shaheen Solomon rebutted the allegations of fraud and Slaton-Dixon's firing as "categorically false". Soloman insisted, "The city had valid and legitimate reasoning for (Slaton-Dixon’s) termination and separation of employment," a perspective diverging from the former finance director’s stand, as per The Atlanta Journal-Constitution. Meanwhile, the District Attorney's office and the FBI have kept mum, neither confirming nor denying any ongoing investigations into the corruption claims in South Fulton.

Slaton-Dixon brought her case to Fulton County Superior Court on June 5, seeking not only reinstatement but also compensatory damages for what she asserts to be a violation of the Georgia Whistleblower Act, an act meant to protect those who expose wrongdoing.