San Francisco: Image sharing and social media service Pinterest has settled a shareholder lawsuit alleging that workplace discrimination against women and racial minorities hampered its reputation, the media reported.
According to NBC News, Pinterest is also committing $50 million for reforms to increase diversity, equity and inclusion across the company.
Financial details of the settlement between Pinterest and the shareholder, the Employees’ Retirement System of Rhode Island, were not shared publicly.
“We pushed for these sweeping reforms to support Pinterest’s employees with a fair and safe workplace, and to strengthen the company’s brand and performance by ensuring that the values of inclusiveness are made central to Pinterest’s identity,” Rhode Island General Treasurer Seth Magaziner was quoted as saying in the report on Wednesday.
The lawsuit was filed against the company’s executives in November 2020.
Multiple women reported that Pinterest paid them less than male employees, and some reported racial discrimination and retaliation for speaking out.
The complaint also accused the company’s CEO of “surrounding himself with yes-men and marginalizing women who dared to challenge Pinterest’s White, male leadership clique.”
After the allegations became public, the Employees’ Retirement System of Rhode Island sued the company, saying executives had breached their fiduciary duty by “perpetrating or knowingly ignoring the long-standing and systemic culture of discrimination and retaliation at Pinterest”.