Goldman Sachs Will Pay $215 Million in Gender Discrimination Suit The class action covers about 2,800 female employees in the bank's investment banking, investment management, or securities divisions.
By Madeline Garfinkle •
Opinions expressed by Entrepreneur contributors are their own.
In September 2010, three former Goldman Sachs employees filed a lawsuit against the bank, citing gender discrimination against female associates through salary, performance reviews, and promotions. Eight years later, it was granted class-action status, and a trial date was set for June 7, 2023 — nearly 13 years after filing the original complaint.
Now, the plaintiffs' longstanding fight is over.
On Monday, a joint statement between the plaintiffs and the bank announced that Goldman Sachs settled the lawsuit for $215 million. In addition to the settlement, Goldman Sachs agreed to change some of its promotion practices and hire independent experts to conduct pay-equity studies and analysis on how the bank carries out performance reviews.
"As one of the original plaintiffs, I have been proud to support this case without hesitation over the last nearly thirteen years and believe this settlement will help the women I had in mind when I filed the case," said Shanna Orlich, in a statement.
Since the original filing, the lawsuit grew to approximately 2,800 qualifying class members, and the settlement payout will be divided by a third-party administrator who will use an objective formula.
Related: The Path to Progress: Achieving Gender Parity in the Workplace Starts With Our Mindset
Qualifying class members are any women who held a position in a revenue-producing role in the bank's investment banking, investment management, or securities divisions anytime between July 7, 2002, and March 28, 2023, or elsewhere in the U.S. at any time from September 10, 2004, through March 28, 2023.
"Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace for all our people," said Goldman Sachs' global head of human capital management, Jacqueline Arthur, in a statement. "After more than a decade of vigorous litigation, both parties have agreed to resolve this matter."
A hearing date for preliminary settlement approval has yet to be announced.
Related: Google Pays $118 Million to Settle Gender Discrimination Lawsuit
