May 9, 2023 - Economy

Goldman to pay $215M to settle discrimination lawsuit filed by female employees

Photo: Michael M. Santiago/Getty Images

Goldman Sachs has agreed to pay $215 million to settle a class-action lawsuit alleging discrimination against women going back over a decade in areas of pay, promotion and performance evaluation.

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

Details: The settlement covers roughly 2,800 female associates and vice-presidents employed in the firm's investment banking, investment management, or securities divisions both in New York and other offices across the U.S., according to a joint statement from Goldman and the plaintiffs on Tuesday.

  • The trial was set to begin June 7.

Between the lines: In addition to the monetary piece, Goldman has agreed to hire an independent expert to analyze its processes for performance evaluations, as well as for promotions from the vice-president to managing director levels.

  • An independent expert will also conduct additional pay equity studies for the firm, and Goldman will be required to investigate and address gender pay gaps, where appropriate.

Of note: Plaintiffs filed the initial complaint in 2010, although the case wasn't certified as a class action until 2018.

What others are saying: “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," Jacqueline Arthur, Goldman Sachs' global head of human capital management, said in a statement.

  • "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.”
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