The corporation, according to court filings and declarations from the plaintiffs and the company, has promised $50 million to alter its corporate culture and promote diversity as part of a deal to address charges that it discriminated against women and people of colour.
In an announcement on Wednesday, Seth Magaziner, the general treasurer of Rhode Island, who was acting on behalf of the Employees’ Retirement System of Rhode Island and other Pinterest shareholders who had sued the company, which is known for its colourful virtual pinboards, said that a settlement had been reached between the parties.
Pinterest’s shareholders had accused the company’s board of directors of failing to address a culture of discrimination and retaliation against women and people of minorities. Pinterest has denied the allegations. The shareholders asserted that the board of directors had failed to act in the best interests of investors by allowing the discrimination to continue.
According to court filings, the claims were brought to light when two Black female members of Pinterest’s public policy team, Ifeoma Ozoma and Aerica Shimizu Banks, openly questioned the company’s treatment of workers.
Under the terms of the settlement, a board-appointed audit committee will assist in overseeing measures meant to provide fair opportunity for all workers. Following the amendments, a board member will be required to collaborate with the chief executive on diversity, equality, and inclusion efforts. This is according to the legal team representing the plaintiff.
A nondisclosure agreement for former workers is also released as part of the settlement, as is the establishment of an external ombuds office for employees, as well as external audits that assess performance evaluations, promotions, and remuneration across gender and racial categories.
The deal was disclosed almost a year after Pinterest agreed to pay $22.5 million to settle a lawsuit filed by Françoise Brougher, the company’s former chief operations officer, alleging gender discrimination and retaliation within the company.
“We pushed for these comprehensive reforms to provide Pinterest’s employees with a fair and safe workplace, as well as to strengthen the company’s brand and performance by ensuring that the values of inclusivity are made central to Pinterest’s identity,” Mr. Magaziner said in a statement. “Pinterest’s employees deserve a fair and safe workplace,” Mr. Magaziner said.
“We have achieved a settlement with some shareholders who voiced concerns and filed derivative actions in relation to the claims made last year regarding the company’s culture,” Pinterest said in a statement on Wednesday. “We are pleased to announce this outcome.”
We have been working diligently since then to ensure that our culture represents the objectives, values, and today’s resolve, according to the organisation.