Pinterest has reportedly settled lawsuit by its shareholders who claimed that the company’s workplace discrimination against women and racial minorities hurt its reputation, according to NBC News.
The company reportedly agreed to spend $50 million on improving its diversity and equity, and will let former employees talk about racial or gender discrimination they experienced, even if they were bound by a non-disclosure agreement. Other financial details of the settlement weren’t disclosed.
The lawsuit was filed in November 2020 against the company’s executives, with shareholder claiming that the company was acting irresponsibly by doing nothing to address widespread claims of race and gender discrimination.
The complaint also accused the company’s CEO of surrounding himself with yes-men and marginalizing women who dared to challenge Pinterest’s White, male leadership clique.
The same year, multiple women reported that Pinterest paid them less than male employees, and some reported racial discrimination and retaliation for speaking out.
Brougher’s lawyer noted at the time that settlements can help companies avoid real accountability, even though they may result in larger payouts and charitable donations.