According to NBC News, Pinterest has resolved a lawsuit filed by shareholders who alleged that the company’s employment discrimination against women and ethnic minorities harmed its brand.
According to reports, the firm has promised to invest $50 million on increasing diversity and equity, and former workers will be allowed to speak openly about racial or gender prejudice they faced, even if they were bound by a non-disclosure agreement. The settlement’s other financial specifics were not revealed.
In November 2020, shareholders filed a lawsuit against the business’s leadership, alleging that the corporation was acting recklessly by doing nothing to address “widespread charges of race and gender discrimination.” The CEO is also accused of “surrounding himself with yes-men and marginalizing women who dared to defy Pinterest’s White, male leadership clique,” according to the lawsuit.
Several women said they were paid less than male employees at Pinterest that year, and several said they faced racial discrimination and reprisal for speaking up. Discrimination among the company’s financial division was also highlighted by The Verge. Separately, the business paid $20 million to Françoise Brougher, its former COO, after she claimed that female was paid less than male colleagues, that she was not invited to critical meetings, and that she was sacked after raising the concerns.
Even such settlements may result in greater rewards and charity gifts, Brougher’s lawyer observed at the time that they can enable firms evade true accountability. (Pinterest and Brougher agreed to give a total of $2 million to organizations that help women and minorities in the IT industry.)