Goldman Sachs Group Inc (GS.N) has agreed to pay $215 million to settle a long-running class-action lawsuit that alleged widespread bias against women in both pay and promotions, a joint statement from the company and the plaintiffs said.
The plaintiffs, former employees of the Wall Street bank, accused Goldman Sachs of systematically paying women less than men, and giving women weaker performance reviews that impeded their career growth.
Wall Street’s Allegation
The lawsuit was one of the most well-known ones involving Wall Street’s alleged discrimination against women in lawsuits against numerous banks that dates back decades. According to the announcement, the settlement applies to around 2,800 female associates and vice presidents working for Goldman Sachs’ investment banking, investment management, and securities businesses.
“Both parties have agreed to settle this dispute after more than ten years of contentious litigation. “We will keep putting our people, our clients, and our business first,” said Jacqueline Arthur, global head of human capital management at Goldman Sachs.
Goldman Sachs to Pay $215 Million to End Gender Pay Case
Recoveries for all Class Members
As part of the settlement, Goldman will also hire independent experts to conduct additional analysis on performance evaluation and gender pay gaps, the statement added.
Kelly Dermody, co-counsel for the plaintiffs, said they believed the settlement provided “substantial, certain recoveries for all class members and advances gender equity at Goldman.”
They are led by associate Shanna Orlich, along with former vice presidents Cristina Chen-Oster, Mary De Luis, and Allison Gamba of Goldman Sachs. Goldman declined to speak despite having previously denied wrongdoing. In contrast to Goldman’s counsel, Sullivan & Cromwell LLP, the plaintiffs’ attorneys at Lieff Cabraser Heimann & Bernstein LLP did not immediately respond to a request for comment. The case is one of the most well-known ones.
