Pinterest settles lawsuit. According to NBC News, the court case against Pinterest has been resolved, with investors claiming that the company’s workplace gender and racial bias harmed its reputation. The firm has agreed to spend $50 million on improving diversity and equity, allowing former employees to discuss racial or gender prejudice they suffered under a non-disclosure agreement. The monetary aspects of the settlement were not revealed.
Pinterest settles lawsuit: Pinterest will improve its diversity and equity
The lawsuit was filed against the company’s leaders in November 2020, alleging that by doing nothing to address “widespread allegations of race and gender discrimination,” the firm was acting irresponsibly. The complaint against Pinterest charged the company’s CEO with “surrounding himself with yes-men and ignoring women who had the courage to challenge Pinterest’s White, male leadership clique.”
That year, multiple women reported that Pinterest paid them less than male employees, and some reported racial discrimination and retaliation for speaking out. The company paid out $20 million to Brougher, its former COO after she claimed that the firm underpaid her and failed to invite her to important meetings, as well as firing her when she addressed the concerns.
Despite the fact that settlements may assist businesses to avoid genuine responsibility, Brougher’s lawyer noted at the time that they may help firms save money on legal fees and secure greater payouts and charitable donations. (Pinterest and Brougher agreed to contribute over $2 million to organizations supporting women and minorities in technology.)
