Goldman Sachs Group Inc (GSN) has agreed to pay $215 million to settle a long-running class-action lawsuit that accused the investment bank of widespread bias against women in pay and promotions. The plaintiffs alleged the bank systematically paid women less than men and gave women weaker performance reviews that impeded their career growth.
The lawsuit is among the highest-profile cases targeting Wall Street's alleged unequal treatment of women, including in litigation against many banks that stretches back decades. Goldman Sachs has settled a class-action lawsuit against 2,500 women who allege that the company discriminated against them in pay and issuing promotions.
The trial was supposed to take place next month, but it wasn't until 2018 when a federal court decided that Cristina Chen-Oster and two other women can represent more than 1,400 current and former employees. Goldman Sachs has agreed to pay the $215 million as part of an agreement with lawyers representing these women.
A third of the settlement is expected to be earmarked for attorney’s fees. "This agreement represents a significant step forward towards ensuring equal opportunities for all at Goldman Sachs," said plaintiff representative Christina Chen-Oster after reaching an agreement with Goldman Sachs representatives.
Goldman Sachs spokesperson Andrew Williams stated: "We are pleased to have reached an agreement with Ms. Chen-Oster and her fellow plaintiffs. We believe this settlement will help foster positive changes within our organization." He also emphasized on ongoing commitment by outlining recent steps taken by the company, such as implementing unconscious bias training programs for managers across its global operations.
Although this case marks one of Wall Street's largest gender discrimination settlements, it remains just one example among numerous high-profile lawsuits filed over several years accusing major financial institutions of biased practices against female employees regarding compensation or professional advancement opportunities.
As more companies face scrutiny over gender equality issues both inside their organizations and throughout wider society, this settlement serves as a powerful reminder that financial institutions must continue to address systemic biases and work towards fostering more inclusive workplace environments.