Goldman Sachs will pay $215 million to settle a lawsuit that accused the bank of systematically discriminating against thousands of female employees. The money will be divided among about 2,800 women, and the bank agreed to change some of its practices.
Goldman Sachs Group agreed to pay $215 million to settle a class action alleging widespread bias against women in pay and promotions, ending one of the highest-profile lawsuits claiming unequal treatment of women on Wall Street.
The settlement disclosed on Monday covers about 2,887 current and former female vice presidents and associates who worked in investment banking, investment management and securities. Goldman denied wrongdoing in agreeing to settle.
The resolution averts a trial that was scheduled to begin in June in the nearly 13-year-old case.
“Everybody is feeling very happy and proud of this settlement – we worked so extremely hard to get here,” said Anne Shaver, a partner at Lieff Cabraser Heimann & Bernstein representing the plaintiffs. “It will inspire other people to step up.”
The average payout could be about $47,000 after deducting legal fees and costs, and court approval is required.
“Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace,” said Jacqueline Arthur, its head of human resources.
#Metoo effect
The #MeToo movement against sexual abuse and recent changes in New York law have made gender-based lawsuits more common, said Domenique Camacho Moran, a partner at law firm Farrell Fritz, who was not involved in the Goldman case.
She said that after the settlement, employers should “step back” to ensure fair practices.
Alison Taylor, a professor at New York University’s Stern School of Business, said it was now “impossible” to keep issues of harassment and discrimination confidential.
Source: Reuters