American Express Settles Sex and Age Bias Suit for $31M

American Express has agreed to a $31 million settlement of a sex and age discrimination suit filed by 17 women who say they were unfairly denied promotions and pay. Though yet to be approved by a federal judge, the plaintiffs believe the agreement is a landmark for the huge financial services company because it changes the way American Express hires and promotes employees.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
American Express Co. has agreed to a $31 million settlement of a sex and age discrimination suit filed by 17 women who say they were unfairly denied promotions and pay. Company spokeswoman Luz Marie Davis confirmed the agreement but denied the allegations. She said American Express is proud of its hiring and promotion record and settled the suit to avoid expensive litigation. “We were very disappointed with the complaint because (the charges) are very contrary to who we are as a company,” Davis, who represents the money management arm, said Thursday. “If these enhancements that we are going to be making make us an even better place to work, that’s a win-win for everyone.” The plaintiffs believe the agreement is a landmark for the huge financial services company because it changes the way American Express hires and promotes employees, their attorney said. “It was very emotional” when the women heard of the agreement, said their lawyer, Lawrence Schaefer. “These are people who took huge risks to step forward.” The prospective deal, which has yet to be approved by a federal judge, also would require American Express Financial Advisors Inc. to begin mandatory diversity training and install a diversity officer. It also requires the company to make sure that 32 percent of new hires for its financial adviser team are women. On Tuesday, U.S. District Judge Henry Kennedy of the District of Columbia said he would issue a ruling within a few weeks. Four women originally filed the suit and were later joined by 13 more, Davis said. More than 4,000 women would qualify for benefits from the settlement. In a bid to reassure stockholders, Davis added that American Express has fully reserved the money it would owe if the settlement is approved. “There would be no financial impact,” she said. Copyright 2002 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Trending Stories

 

Featured Product

Global Briefing

A weekly, curated selection of our international content from around the globe, across the business of law, in-house, regulatory, technology and more, with expert insights from our senior editors.

Learn More

More from ALM

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Privacy Policy

About Us / Contact Us / Site Map / Advertise With Us/ Customer Service / Terms of Service/ FAQ / Privacy Policy

Publications

Law Topics

Rankings

More

Law.com

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.