Goldman Sachs settles gender bias class action
Goldman Sachs has agreed to pay $215 million to settle a class action lawsuit that accused the company of committing gender bias. The settlement will cover around 2,800 female Associates and Vice-Presidents who worked at the company’s Investment Banking, Investment Management, or Securities Divisions in New York from July 7, 2002, to March 28, 2023, and those who worked elsewhere in the United States between September 10, 2004, through March 28, 2023. The lawsuit was first filed against Goldman Sachs in September 2010, alleging that the company committed class-wide gender discrimination in pay, performance evaluation, and promotion. The settlement will prevent a trial that was set to begin in June.
As part of the agreement, Goldman Sachs has agreed to engage with independent experts to conduct additional analysis on performance evaluation processes and the process for promotion from vice president to managing director. The company also agreed to conduct additional pay equity studies to investigate and address any gender pay gaps, as well as enhancing select communications to vice presidents regarding career development and promotion criteria. In a statement, Goldman Sachs Global Head of Human Capital Management, Jacqueline Arthur, said the company remains committed to ensuring a diverse and inclusive workplace for all its people.
The plaintiffs of the 13-year-old lawsuit expressed pride in the outcome of the case. Plaintiff Shanna Orlich said she was proud to support the case for almost thirteen years and believed the settlement would help the women she had in mind when she filed the case. Plaintiff Allison Gamba said her goal in the case was always to support strong women on Wall Street and was proud that the result achieved would advance gender equity. The settlement reflects Goldman Sachs’ long-standing record of promoting and advancing women while avoiding a potentially costly trial.
