Abercrombie & Fitch settle discrimination suit - $40 Million

November 17, 2004 Tron Nick

Abercrombie & Fitch to change marketing, hiring policies to settle discrimination suit - $40 Million

Company reported a 21% drop in Q3 earnings

The trendy retail chain, Abercrombie & Fitch, has agreed to settle a lawsuit brought by black, Hispanic, Asian and female employees by paying a total of nearly $50 million, changing its advertising and marketing materials to include people of color, and establish a corporate department that will oversee diversity policies. The settlement, in which A&B denies it engaged in any discriminatory practices, was announced after Judge Susan Illston of the U.S. District Court for the Northern District of California certified the class status of the multiple lawsuits brought against the company. She then signed a preliminary approval order that called for the following: Payment of $40 million to several thousand plaintiffs , Payment of $7.2 million in legal fees, Changes to be made in Abercrombie & Fitch's catalogs and advertisements that will reflect racial diversity, Creation of an Office of Diversity and the position of Vice President of Diversity, The retention of an expert consultant to help develop and implement a Recruitment and Hiring Protocol, Establishment of benchmarks for achieving a racially diverse workforce. [more]