Goldman Sachs has recently agreed to pay a sum of $215 million to resolve a lawsuit brought against them by around 2,800 female employees.
The employees claimed that they were paid less than their male counterparts at the company. This lawsuit has been ongoing for quite some time, and finally, after 13 years, a settlement has been reached.
Details about the lawsuit
The lawsuit was among the many cases that have targeted Wall Street’s unequal treatment of women and has been ongoing for decades.
The lawsuit was filed in 2010 by former employees, including Cristina Chen-Oster and Shanna Orlich, who accused the investment banking company of discrimination. Chen-Oster had earlier filed a complaint in July 2005.
To resolve this issue, the company has agreed to hire experts who will independently evaluate their performance evaluation policies and the difference in pay between men and women. This was stated in a company announcement about the settlement.
As per a joint statement from the plaintiffs and the company, this payment will be distributed among the staff who were part of the lawsuit.
The staff includes 2,800 female associates and vice presidents who worked in the bank’s investment banking, investment management, and securities divisions. Additionally, it is expected that about one-third of the funds will be used to cover legal fees.
Jacqueline Arthur, the global head of human capital management at Goldman Sachs stated, “After more than a decade of vigorous litigation, both parties have agreed to resolve this matter. We will continue to focus on our people, our clients, and our business.”
$GS Goldman Sachs to pay $215 mln to settle gender discrimination lawsuit. pic.twitter.com/uwDx1Y66JX
— datastocks (@Renepdata) May 9, 2023
Adam Klein, a lawyer representing the former employees, has praised the agreement, stating that it offers meaningful relief to their clients.
Kelly Dermody, another lawyer for the plaintiffs, believes that the settlement provides substantial and certain recoveries for all class members and advances gender equity at Goldman.
One of the plaintiffs, Allison Gamba said in a statement, “My goal in this case has always been to support strong women on Wall Street.” She further said, “I am proud that the result we achieved here will advance gender equity.”
Goldman Sachs’ previous settlements
Goldman Sachs had fought to send some of the cases brought against them to arbitration. In 2022, the bank was reported to have paid more than $12 million in a secret settlement to bury the claims of a sexist culture.
The CEO David Solomon was accused in an internal complaint of bragging to colleagues about receiving sex acts shortly after he took over in 2018. The bank denied the accusation, and sources claimed that it stood out because it was considered so out of character for Solomon to make that kind of comment.
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