{"id":34233,"date":"2018-04-07T07:34:48","date_gmt":"2018-04-07T07:34:48","guid":{"rendered":"http:\/\/dominiclevent.com\/blog\/?p=34233"},"modified":"2019-04-17T17:13:58","modified_gmt":"2019-04-17T17:13:58","slug":"class-certification-granted-in-goldman-sachs-gender-discrimination-litigation","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/class-certification-granted-in-goldman-sachs-gender-discrimination-litigation\/","title":{"rendered":"Class Certification Granted in Goldman Sachs Gender Discrimination Litigation"},"content":{"rendered":"


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In a 49-page opinion issued last week, Judge Analisa Torres of the United States District Court for the Southern District of New York granted class certification to a group of women alleging that Goldman Sachs systemically and pervasively discriminated against female professional employees in violation of Title VII and the New York City Human Rights Law.<\/p>\n

Plaintiffs claim they were discriminated against in pay, promotions, and performance reviews, and that Goldman Sachs: (1) employs facially neutral policies that disparately impact women; (2) knows of the policies\u2019 disparate impact on women; and (3) maintains a \u201cboy\u2019s club\u201d culture that discriminates against women.\u00a0Chen-Oster v. Goldman Sachs & Co.<\/em>, March 30, 2018.\u00a0 The class includes female associates and vice presidents who have worked in Goldman\u2019s investment banking, investment management, and securities divisions since September 2004 (and employees in New York City since July 2002).\u00a0 It is estimated that more than 2,000 plaintiffs are included in the class.<\/p>\n

Goldman Sachs attempted to defeat class certification by arguing, among other things, that plaintiffs were required to show that its challenged policies concerning compensation and promotion were applied uniformly, but which plaintiffs could not do because the challenged processes were applied by managers in highly individualized ways.<\/p>\n

In a fairly unusual move, Judge Torres overruled the magistrate judge\u2019s recommendation to deny certification.<\/p>\n

On their disparate impact claim, the court agreed that plaintiffs must show that Goldman Sachs used a \u201ccommon mode of exercising discretion,\u201d but held that this \u201ccommon mode\u201d did not mean that having flexibility in compensation and promotional decisions rendered class certification inappropriate. The court maintained that to interpret \u201ccommon mode\u201d in such a way would divest all discretion from lower-level managers, and render the meaning of \u201ccommon mode of exercising discretion\u201d self-contradictory.<\/p>\n

The court distinguished the facts before it from that of the plaintiffs in\u00a0Wal-Mart Stores, Inc. v. Dukes<\/em>, 564 U.S. 338 (2011), where there was an absence of common job evaluation procedures.\u00a0 There, the employees were subject to a wide variety of policies that differed.\u00a0 In the Goldman Sachs case, however, it was undisputed that each class member was subjected to the challenged \u201c360 review and quartiling processes,\u201d and that all promotions from the vice president position were subject to a uniform process.<\/p>\n

On plaintiffs\u2019 disparate treatment claim, Goldman Sachs\u2019 argument that class members lacked significant proof that the common modes were discriminatory also proved unsuccessful. The court concluded that plaintiffs had provided \u201csignificant proof of discriminatory disparate treatment,\u201d relying on, among other things, plaintiffs\u2019 expert report which asserted that female vice presidents and associates were on average paid 21 percent and 8 percent less than their male counterparts, respectively.<\/p>\n

In one win for Goldman Sachs, the court declined to certify the claim that it maintained a \u201cboys club\u201d culture. Although the court found that establishing this claim could require generalized proof, certification was nevertheless inappropriate because Goldman Sachs\u2019 rebuttal evidence would require individualized inquiries into each particular incident of sexual assault, sexual harassment, stereotyping, impunity of make misconduct, and retaliation.<\/p>\n<\/p><\/div>\n

\t\t\t\t Jackson Lewis P.C. \u00a9 2018\t\t\t<\/p>\n


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In a 49-page opinion issued last week, Judge Analisa Torres of the United States District Court for the Southern District of New York granted class certification to a group of women alleging that Goldman Sachs systemically and pervasively discriminated against female professional employees in violation of Title VII and the New York City Human Rights … <\/p>\n

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