Goldman Sachs Group Inc. is racing to settle one of Wall Street’s biggest gender-discrimination cases, a move that could help avoid the spotlight and embarrassment of a class-action trial that’s weeks away.
(Bloomberg) — Goldman Sachs Group Inc. is racing to settle one of Wall Street’s biggest gender-discrimination cases, a move that could help avoid the spotlight and embarrassment of a class-action trial that’s weeks away.
The company has discussed figures that may reach about $200 million with lawyers representing Cristina Chen-Oster and other plaintiffs in the class-action lawsuit, according to a person familiar with the matter.
A representative for Goldman Sachs declined to comment. There’s no guarantee that the two sides will come to an agreement before the trial begins next month, another person said, asking not to be identified discussing private information.
If they do, it will put an end to one of the industry’s longest running and most public fights over pay disparity. Avoiding a high-profile trial in open court not far from Goldman’s New York headquarters would defuse the risk of humbling the finance giant and executives who might testify.
The suit accuses the Wall Street stalwart of discriminating against women in pay and promotions, allegations Goldman has denied. It has also gone further, seeking to portray a culture where male executives belittle women and stymie their careers.
Plaintiffs also tried to bring a claim of a boys’ club atmosphere, though the court has said that would require individualized inquiries into incidents and didn’t qualify for class treatment.
Two Decades
Chen-Oster, a Massachusetts Institute of Technology graduate who joined in 1997 and sold convertible bonds, first filed a discrimination complaint in July 2005 with the US Equal Employment Opportunity Commission. She was a managing director at Deutsche Bank AG by the time she was allowed to take Goldman to court in 2010.
It took another eight years for a court to let her and other women represent more than 1,400 current and former employees. Yet Goldman fought to send many to arbitration, a more secretive system that Wall Street helped popularize.
Corporations inside the finance industry and well beyond have long tried to solve problems as quietly as possible. Their arsenal includes quiet settlements, non-disclosure agreements and forced arbitration contracts.
The scale of Wall Street profits makes even nine-figure sums difficult to benchmark. Goldman earned well more than $200 million of profit per week in this year’s first quarter.
Years ago, Chen-Oster told Bloomberg Businessweek about a friend at another finance firm who was told in a compliance training to do what it took to avoid another case like hers. “It’s having a positive impact,” she said then. “Just raising awareness is a big one right there.”
–With assistance from Joel Rosenblatt.
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