15.07.2010 • NewsNovartisgender-bias trial

Novartis in $175 Million Gender Bias Settlement

Novartis has agreed to pay $175 million to settle a class-action lawsuit accusing the Swiss drugmaker of discriminating against 5,600 current and former female employees.

The settlement was announced less than two months after a Manhattan jury ordered Novartis to pay $250 million in punitive damages, after a six-week trial. That jury concluded the company's U.S. unit, Novartis Pharmaceuticals, engaged in a pattern of discrimination between 2002 and 2007.

Lawyers for the plaintiffs said it was the largest U.S. gender discrimination case ever to go to trial. In a joint statement with the plaintiffs' lawyers, Novartis said it will pay $152.5 million to eligible class members and pay an additional $22.5 million to improve companywide complaint processes, oversight and performance assessment.

The settlement requires court approval. U.S. District Judge Colleen McMahon scheduled a Nov. 19 hearing to consider whether to approve it.

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