In addition, Abercrombie created a $40 million Settlement Fund for distribution to individual class members. Abercrombie will also pay attorneys' fees and costs associated with monitoring compliance during the time that the Consent Decree is in effect (4.5 to 6 years from Final Approval, depending on Abercrombie’s progress). This will total approximately $10 million, bringing the total amount abercrombie outlet must pay to approximately $50 million. Click here to read the court-approved Consent Decree [pdf format]. The provisions in the Decree are currently in effect.
“The young men and women who applied to work at Abercrombie should have been judged on their qualifications, and not their skin color or gender. The class action settlement compensates class members for being subjected to the challenged practices and ensures that Abercrombie will improve its employment practices and diversity efforts nationwide,'' commented Lieff Cabraser attorney Kelly M. Dermody.
Summary of the Settlement of the Ruehl No.925 Class Action Lawsuit
On April 14, 2005, Judge Susan Illston of the U.S. District Court for the Northern District of California granted final approval to a settlement of the class action lawsuit Gonzalez v. Abercrombie & Fitch. The settlement requires the retail clothing giant to pay $50 million, less attorneys' fees and costs, to Latino, African American, Asian American and female applicants and employees who charged the company with discrimination.
The settlement also requires the company to institute a range of policies and programs to promote diversity among its workforce and to prevent discrimination based on race or gender. hollister Co. is a clothing retailer marketing to young adults, teenagers and children. It employs over 22,000 employees, most of whom are college-age adults, in over 700 stores throughout the United States.
Ongoing Consent Decree Governs Abercrombie's Employment Practices into at Least 2009
The Consent Decree (settlement agreement) contains provisions related to the recruitment, hiring, job assignment, training, and promotion of Abercrombie & Fitch, Hollister, and abercrombie kids employees.
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