Goldman settles gender discrimination suit for US$215 million

Goldman Sachs will pay US$215 million to settle a years-long class action lawsuit that claimed the bank discriminated against women when it came to pay, performance evaluations and promotions.

The lawsuit, initially filed in September 2010, was set to go to trial next month. The settlement covers about 2,800 female associates and vice-presidents in Goldman’s investment banking, investment management and securities divisions.

“My goal in this case has always been to support strong women on Wall Street. I am proud that the result we achieved here will advance gender equity,” plaintiff Allison Gamba said in a prepared statement.

Aside from the payment, the settlement includes a three-year period during which Goldman will work with an independent expert to perform more analysis on its performance evaluation processes, as well as its process for promoting individuals from vice-president to managing director. It also requires an independent expert to conduct additional pay equity studies and for the New York City company to investigate and address any gender pay gaps where appropriate.

“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. After more than a decade of vigorous litigation, both parties have agreed to resolve this matter,” said Jacqueline Arthur, Goldman Sachs global head of human capital management. “We will continue to focus on our people, our clients, and our business.”

Michelle Chapman, The Associated Press

Michelle Chapman is a reporter with The Associated Press,  an American not-for-profit news agency headquartered in New York City and founded in 1846.