Pinterest to spend $50 million to resolve discrimination allegations
Pinterest to spend $50 million to resolve discrimination allegations
- Nov 26, 2021
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The settlement was announced on Wednesday by the general treasurer of Rhode Island, Seth Magaziner, who acts on behalf of the Employees’ Retirement System of Rhode Island and other Pinterest shareholders who sued the company known for its colorful virtual pinboards. The shareholders had accused Pinterest's board of directors of failing to respond to a culture of discrimination and retaliation against women and people of color. The shareholders argued that by failing to respond, the company allowed discrimination to continue the board failed to act in the best interests of stockholders.
The allegations against the company came to light when two Black female members Pinterest's public policy team Ifeoma Ozoma and Aerica Shimizu Banks, publicly criticized the company’s treatment of employees, according to court documents. Under the settlement, an audit committee of the board will oversee changes and create equal opportunities for the employees. The changes also require that a board member act as a co-sponsor with the chief executive on diversity, equity, and inclusion initiatives, according to the plaintiff’s legal team. This settlement also releases former employees from non-disclosure agreements.
Source: The New York Times
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