Goldman Sachs has agreed to pay $215 million to settle a long-standing class-action lawsuit which alleged discrimination against its female employees in both pay and promotions. The lawsuit, brought by former employees of the Wall Street bank, claimed that Goldman Sachs systematically paid women less than men and gave them weaker performance reviews, hindering their career growth.
The settlement, which covers roughly 2,800 female associates and vice presidents employed in the investment banking, investment management, and securities divisions of Goldman Sachs, is one of the highest-profile cases targeting Wall Street’s alleged unequal treatment of women in litigation against many banks that stretches back decades.
As part of the settlement, Goldman Sachs will also hire independent experts to conduct additional analysis on performance evaluation and gender pay gaps. The company and the plaintiffs issued a joint statement, with Jacqueline Arthur, Goldman Sachs’ global head of human capital management, saying, “After more than a decade of vigorous litigation, both parties have agreed to resolve this matter. We will continue to focus on our people, our clients, and our business.”
The plaintiffs’ co-counsel, Kelly Dermody, added that they believed the settlement provided “substantial, certain recoveries for all class members and advances gender equity at Goldman.” This settlement is a significant step forward for gender equality in the workplace, and it sends a message to other companies that discrimination will not be tolerated.