Goldman Sachs Settles Gender Discrimination Suit for $215M

Goldman Sachs has agreed to pay $215 million to settle a longstanding gender discrimination lawsuit filed by 2,800 women. The class-action suit, which has persisted for over a decade, asserts that female employees were consistently overlooked for promotions and received lower compensation than their male counterparts. Shanna Orlich, one of the original plaintiffs, expressed pride in supporting the case for almost 13 years and believes the settlement will bring about change.

Orlich, together with two other women, originally filed the lawsuit in Manhattan Federal Court in September 2010. By 2018, the case was certified as a class action, allowing thousands of women who previously held vice president or associate positions at Goldman Sachs to join the litigation. A trial had been scheduled for June but was averted by the settlement.

Allison Gamba, another plaintiff, stated that her goal was to support strong women on Wall Street and that the result of the case would contribute to gender equity. The plaintiffs portrayed Goldman Sachs as a “boys club” that actively limited their career progression and paid them less, even when their performance exceeded that of male colleagues. Upon inquiring about a potential promotion, Gamba recounted her manager's response: “I would have been a laughing stock if I had nominated you.”

In addition to discrimination claims, the lawsuit cited numerous instances of sexual assault and harassment that occurred at the bank between 2000 and 2011, which served as supporting evidence. Despite these accusations, Goldman Sachs, which boasts an estimated market cap exceeding $100 billion, has claimed it has a “long record of promoting and advancing women.”

Jacqueline Arthur, an executive at the bank, acknowledged the vigorous litigation that has persisted for over a decade and emphasized their commitment to resolving the issue. Arthur concluded by reaffirming the bank's focus on their employees, clients, and business.