Photo sharing service Pinterest recently got sued over claims of discrimination against women and racial minorities at the company’s workplace.
The company has recently settled the lawsuit brought against its shareholders. The company reportedly agreed to shell out about US$50 million on improving its diversity and equity pursuit as well as allowing former employees to talk about racial or gender discrimination they experienced while working with the organization.
However, details about other financial settlements weren’t disclosed. The lawsuit had been filed against the company’s execs since Nov. 2020 with shareholders claiming the company was acting irresponsibly by not doing much to combat the widespread claims of race and gender discrimination at the company’s workplace.
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.”
About the wage gap, a number of women reported being paid less than their male counterparts and some even reported being racially discriminated against and other retaliatory practices by the company’s execs if anyone dared to speak out.
Earlier, the company had paid about US$20 million to its former COO Françoise Brougher after she alleged the company paid her less than her male colleagues as well as failing to invite her to important meetings, and firing her after she brought up the issues.
However, Brougher’s lawyer speaking on her behalf made it clear at that time that settlements like this make it easy for companies to avoid real accountability, even if it may result in larger payouts and charitable donations.
(Pinterest and Brougher agreed to jointly donate over $2 million to charities supporting women and minorities in tech.)