Abercrombie & Fitch to change marketing, hiring policies to settle discrimination suit - $40 Million
Company reported a 21% drop in Q3 earnings
The trendy retail chain, Abercrombie & Fitch, has
agreed to settle a lawsuit brought by black, Hispanic, Asian and female
employees by paying a total of nearly $50 million, changing its
advertising and marketing materials to include people of color, and
establish a corporate department that will oversee diversity policies.
The settlement, in which A&B denies it engaged in any
discriminatory practices, was announced after Judge Susan Illston of
the U.S. District Court for the Northern District of California
certified the class status of the multiple lawsuits brought against the
company. She then signed a preliminary approval order that called for
the following: Payment of $40 million to several thousand
plaintiffs , Payment of $7.2 million in legal fees, Changes
to be made in Abercrombie & Fitch's catalogs and advertisements
that will reflect racial diversity, Creation of an Office of Diversity
and the position of Vice President of Diversity, The retention of an
expert consultant to help develop and implement a Recruitment and
Hiring Protocol, Establishment of benchmarks for achieving a racially
diverse workforce. [more]
