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Nike Settles Racism Lawsuit for $7.6M
Court Watch |
2007/08/02 03:42
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| Nike Inc. has reached a $7.6 million settlement in a class-action race discrimination lawsuit filed on behalf of 400 black employees of the company's Chicago Niketown store, the company said Monday. The lawsuit, filed in 2003, claimed managers at the retail store used racial slurs to refer to black workers and customers. They also said the store segregated black employees into lower-paying jobs as stockroom workers and cashiers rather than giving them lucrative sales jobs. And they alleged managers made unfounded accusations of theft against black workers and directed store security to monitor black employees and customers because of their race. Nike has denied the allegations. Under the terms of the agreement, Nike Retail Services will pay $7.6 million to the current and former employees to resolve the claims. The lawsuit covers black employees who worked at the store from 1999 until now. Nike also must make a host of other changes to address diversity, such as appointing a diversity consultant to monitor the Chicago store's compliance and a compliance officer at Nike's headquarters in Beaverton. The company must also add an ombudsperson at the store and conduct diversity training for all supervisors and managers there. Nike also is required to review its human resources practice, create equal opportunity objectives for the store and review its theft-loss policies. It also will create a formal mentoring program for black employees. The company and the attorney for the plaintiffs declined to comment further on the case.
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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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