www.cnn.com/2004/LAW/11/16/abercrombie.lawsuit.ap/index.html
has agreed to pay $40 million to black, Hispanic and Asian employees and job applicants t o settle a class-action federal discrimination lawsuit that accused the clothing retailer of promoting whites at the expense of minorities, lawy ers said Tuesday. The settlement, approved Tuesday morning by US District Court Judge Sus an Illston, requires the company to adhere to a consent decree that call s for implementing new policies and programs to promote diversity and pr event discrimination in its workforce. It also must pay about $10 millio n to monitor compliance and cover attorneys' fees. "We have, and always have had, no tolerance for discrimination," said Mik e Jeffries, chairman and chief executive of New Albany, Ohio-based Aberc rombie & Fitch Co. The company settled to avoid "long, drawn out" litiga tion, he said in a release. The lawsuit was filed last June in San Francisco by Hispanic and Asian gr oups charging that Abercrombie & Fitch, known for its "classic casual Am erican" clothing styles, hires a disproportionately white sales force, p uts minorities in less-visible jobs and cultivates a virtually all-white image in its catalogues and elsewhere. A second, similar lawsuit was fi led against the company last November in New Jersey. The US Equal Employment Opportunity Commission joined the private plain tiffs in the lawsuit, which alleged that Abercrombie & Fitch violated po rtions of the Civil Rights Act of 1964. The lawsuit specifically accused the company of engaging in recruiting and hiring practices that exclude minorities and adopting a virtually all-white marketing campaign. The EEOC estimated the settlement would affect more than 10,000 Hispanic, Asian or black men and women. Abercrombie & Fitch said it hired Todd Corley, a diversity consultant, as its newly created vice president of diversity under the consent decree, which also calls for hiring up to 25 diversity recruiters. The company also promised that its marketing materials would reflect diversity. The original lawsuit was brought on behalf of nine young minorities, incl uding students and graduates of Stanford University and the University o f California, who were denied jobs or fired based on their race. "This agreement promises to transform this company, whose distinctiveness will no longer stem from an all-white image and workforce," said Thomas A Saenz, vice president of litigation at the Mexican American Legal De fense and Educational Fund.
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