Goldman Sachs Group Inc. Has agreed to pay $215 million to put an end to a lawsuit that accused the Wall Street giant of systematically underpaying women. The lawsuit accuses the investment bank of widespread bias against women in both pay and promotion.
As per last week media reports, talks were going on to settle the case, roughly a month before the trial was set to begin.
The New-York based bank struck the deal with lawyers representing about 2,800 women, who claimed the firm discriminated against them because of their gender, as reported by Bloomberg. It is said that a third of the settlement is expected to be set aside for attorney fee.
They are led by Cristina Chen-Oster, Mary De Luis and Allison Gamba, who were Goldman vice presidents, and Shanna Orlich, who was an associate. The suit was first brought by Cristina Chen-Oster, who filed the discrimination case in July 2005 with the US Equal Employment Opportunity Commission, then sued in 2010.
The upcoming trial, which is scheduled for next month in New York, would have provided a rare public forum for testimony about inequality inside the financial industry. The case has garnered a lot of interest internationally as well, and it is closely watched in an industry where women have long said the complaining of unfair treatment can derail careers.
The settlement is bigger than the sum that Smith Barney paid decades ago, as per Bloomberg report. The Smith Barney paid more than $100 million to end what was famous as the Boom-Boom Room Suit, which had accused the firm of harassment and discrimination.
