Goldman Sachs Settles Class Action Gender Discrimination Suit

Goldman Sachs has agreed to pay a $215 million settlement for a class action lawsuit that claimed gender discrimination by its employees. About 2,800 current and former female vice presidents and associates that were working in investment banking, investment management and securities claimed they were being discriminated against when it came to pay, performance evaluations and promotions. The settlement covers all the female employees that filed the lawsuit back in September of 2010. The individual payout amount comes to roughly $47,000 per plaintiff. One of the plaintiffs stated that she is proud of the result that was achieved in the case and that hopefully will advance gender equity on Wall Street.

According to the settlement, Goldman will work with an independent expert for a three-year period to analyze its performance evaluation and promotion processes. The investment firm will also work with another independent expert to conduct pay equity studies and investigate any gender pay gaps within the company.

In 2020, Goldman stated that they aimed for 40% of vice presidents to be female in the next five years. Currently, a record of 29% of its partners and managing directors are female. Jacqueline Arthur, head of human resources, said “Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace.”

This lawsuit is one of the most recent gender inequality and discrimination cases that has been settled among various Wall Street Firms, including Bank of America Corp, Citigroup Inc, Morgan Stanley, and Smith and Barney. Gender-based lawsuits have become more common with the #MeToo movement against sexual abuse and harassment, and recent changes in New York laws.

Like, New York, California has some of the strictest pay equity laws in the country.