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Judge OKs Kodak's settlement of race-based lawsuit
Federal Class Actions | 2010/09/04 00:37

A federal judge on Friday approved Eastman Kodak Co.'s $21.4 million offer to settle class-action lawsuits by black employees who maintained white counterparts were favored over them for pay and promotion.

In an almost seven-year legal tussle, U.S. Magistrate Jonathan Feldman signed off on a deal that pays about 3,000 current and past Kodak workers amounts ranging from $1,000 to $50,000. The decision ends a 2004 class-action lawsuit and a similar suit filed by other black workers in 2007.

The Rochester, N.Y.-based photography products maker was accused of paying black employees less than white co-workers, passing them over for promotions and maintaining a racially hostile work environment.

Last October, Feldman heard arguments in favor of the deal from Kodak and lawyers for the plaintiffs. He then fielded complaints from more than a dozen former employees who said proposed payouts were inadequate, lawyer fees too high and the offer unfairly excluded workers who left Kodak before 1999.

Under the settlement, 3,008 workers get $9.65 million and their lawyers $9.7 million in fees and expenses. Adjustments to individual awards were negotiated, with a dozen workers having $75,000 awards reduced by one-third.

The balance of the settlement will go to administering the claims and supporting enhanced diversity training for supervisors that Kodak promised as part of the deal. The company will also hire an industrial psychologist and two labor statisticians to review pay and promotion policies and recommend improvements.



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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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