Goldman Sachs pays $215 million to settle lawsuit for underpaying women

Goldman Sachs has agreed to pay $215 million to settle a long-running class-action lawsuit accusing the Wall Street bank of paying women less than men.

Goldman Sachs, one of the world's largest investment banks, settled the case with lawyers representing about 2,800 female associates and vice presidents.

The lawsuit, which was set to go to trial in July, alleged Goldman Sachs underpaid women compared to men, gave women worse performance reviews and passed women over for promotions.

Women who had worked for the investment bank first filed suit in 2010.

As part of the settlement, the bank will work with an outside expert for three years to ensure it has "accurate, reliable, and non-biased outcomes" for employees.

One of the original plaintiffs, Shanna Orlich, said she feels the settlement will help advance women's careers at the Wall Street bank.

"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,” she said.

Goldman Sachs said they remain committed to ensuring a diverse and inclusive workplace.

"After more than a decade of vigorous litigation, both parties have agreed to resolve this matter," said the bank's global head of human capital management, Jacqueline Arthur. "We will continue to focus on our people, our clients, and our business."

SILICON VALLEY BANK Trying to get a loan? How the 2023 banking crisis has made borrowing even tougher.

What did the Goldman Sachs lawsuit say?

In 2010, women at Goldman Sachs filed suit claiming the Wall Street bank descriminated based on gender, violating Title VII of the Civil Rights Act of 1964 and the New York City Human Rights Law, according to a press release.

Women and their lawyers provided data that plaintiffs said showed the bank discriminated against women in how much women were paid, how women were or were not promoted and how the bank reviewed the performance of female employees.

The judge also considered anecdotal evidence of a "hostile" work environment at Goldman Sachs.

As part of the settlement, Goldman Sachs didn't admit to any wrongdoing and denied the bank violated laws.

HOME PRICES See the 7 in 10 metros where home prices went up last quarter.

Does Goldman Sachs have a hostile work environment?

In court documents, women say they were given unfair performance reviews and passed up for promotions because of their gender — despite earning multimillion profits for Goldman Sachs, in at least one case.

Women describe multiple instances of being excluded from gatherings based on their gender and being treated differently than men.

Plaintiff Shanna Orlich alleged one of her male bosses hired "scantily clad" female escorts for a work holiday party. She also alleged a vice president invited every man in her department to play golf, and excluded her, despite her "having played varsity golf in high school."

Another woman also alleged being excluded from barbeques and golf outings than men went to, describing a "boy's club" culture.

Another plaintiff, Mary De Luis alleged that when she told her male supervisors she was underpaid compared to the average salary for her role, they told her to remember the career of her boyfriend, who was an oncologist.

WHAT IS A SENIOR CARE PLAN? Learn about a key to aging well

Who does Goldman Sachs have to pay?

The settlement applies to women who held the role of associate or vice president at Goldman Sachs and underwent certain employee performance reviews.

Any woman with those titles who worked at Goldman Sachs in New York between July 7, 2002 to March 28, 2023 and produced revenue for the bank may be able to get class settlement benefits, the bank said.

This article originally appeared on USA TODAY: Goldman Sachs class-action gender lawsuit settlement reached