Goldman Sachs To Pay $215 Million To Settle Gender-Pay Lawsuit: Report
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The lawsuit accuses the investment bank of widespread bias against women in both pay and promotion
In order to terminate a lawsuit accusing the Wall Street behemoth of routinely underpaying women, Goldman Sachs Group Inc. has agreed to pay $215 million. The investment bank is charged with pervasive discrimination against women in terms of compensation and promotion in the case.
A month before the trial was scheduled to start, according to news sources from last week, negotiations to resolve the case were ongoing.
According to Bloomberg, the New York-based bank reached a settlement with the attorneys for roughly 2,800 women who said that the company had discriminated against them due to their gender. According to reports, a third of the settlement would be used to pay legal expenses.
Along with former vice presidents Cristina Chen-Oster, Mary De Luis, and Allison Gamba of Goldman Sachs, they are directed by associate Shanna Orlich. Cristina Chen-Oster later filed a lawsuit in 2010, following the first filing of the discrimination accusation with the US Equal Employment Opportunity Commission in July 2005.
The next trial, which is scheduled to take place in New York the following month, would have provided a rare public forum for testimony alleging unfairness in the banking sector. The case has received a lot of media interest both locally and internationally, and it is being watched in a sector where women have long argued that complaining about unfair treatment may damage careers.
The sum of the payment is higher than what Smith Barney previously paid, according to a Bloomberg story. Smith Barney paid more than $100 million to resolve the infamous Boom-Boom Room Suit, which had accused the business of harassment and discrimination.
Goldman Sachs to pay $215 mln to settle gender discrimination lawsuit: Report
Goldman Sachs Group Inc. has agreed to pay $215 million to settle a lengthy class-action lawsuit claiming the investment bank of systemic discrimination against women in terms of pay and promotions, according to a source familiar with the case published by Bloomberg News on Monday.
Reuters reported last week that settlement talks were still in progress about a month before the trial was supposed to begin.
The plaintiffs claim that the bank frequently underpaid women and gave them lower performance reviews, which impeded their ability to grow in their professions.
Along with former vice presidents Cristina Chen-Oster, Mary De Luis, and Allison Gamba of Goldman Sachs, they are directed by associate Shanna Orlich.
Despite having earlier denied misconduct, Goldman remained silent.
The plaintiffs’ lawyers at Lieff Cabraser Heimann & Bernstein LLP did not immediately respond to a request for comment, in contrast to Goldman’s legal representatives, Sullivan & Cromwell LLP.
This case is one of the more well-known ones that targets Wall Street’s alleged discrimination against women, coupled with litigation against many organisations that extends back decades.
