Financial giant also agreed to engage with independent experts to review internal processes
Goldman Sachs has agreed to pay $215 million to settle a long-running class action lawsuit that accused the financial giant of committing gender bias.
The settlement will cover approximately 2,800 female Associates and Vice-Presidents. They include those who held positions at the company's Investment Banking, Investment Management, or Securities Divisions in New York at any time from July 7, 2002, to March 28, 2023, as well as those who worked elsewhere in the United States between September 10, 2004, through March 28, 2023.
The agreement settles the lawsuit first filed against Goldman Sachs in September 2010, alleging that the company committed class-wide gender discrimination in pay, performance evaluation, and promotion.
"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, in a statement.
In the agreement, Goldman Sachs also agreed to engage with independent experts to conduct:
- Additional analysis on performance evaluation processes, as well as the process for promotion from vice president to managing director
- Additional pay equity studies, with Goldman Sachs to investigate and where appropriate address any gender pay gaps
The financial giant also agreed to enhance select communications to vice presidents regarding career development and promotion criteria.
"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," Arthur said. "We will continue to focus on our people, our clients, and our business."
The plaintiffs of the nearly 13-year-old lawsuit said they were proud over the outcome of the case.
"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 Plaintiff Shanna Orlich in a statement.
According to Plaintiff Allison Gamba, her goal in the case has always been to support strong women on Wall Street.
"I am proud that the result we achieved here will advance gender equity," Gamba said.
Goldman Sach's announcement settle the case averts a trial that was set to begin in June.