The Walt Disney Co. (NYSE:DIS) has agreed to pay $43.25 million to settle a gender pay discrimination lawsuit, ending years of legal proceedings.
What Happened: The lawsuit, filed in 2019 by Disney employee LaRonda Rasmussen, alleged that she was paid less than male colleagues in similar roles.
The case expanded as more female employees joined, leading to a California judge granting class certification in December 2023.
Plaintiffs argued that Disney had a company-wide policy before 2018 that resulted in women receiving lower starting salaries than men.
This was partly due to basing pay on prior salaries, which often reflected gender disparities.
A labor economist’s analysis, cited by the plaintiffs, indicated that from 2015 to 2022, women at Disney earned less than their male counterparts, with a 2.01% female pay penalty.
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Disney contested these findings, maintaining their commitment to fair pay. A Disney spokesperson stated, “We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case.”
Christine Webber, representing the plaintiffs, praised the women involved, stating, “This settlement would not be possible without these courageous women. Because of them, women can expect equitable treatment at Disney in the future.”
Why It Matters: The settlement comes amid a broader trend of gender pay discrimination lawsuits in major corporations.
Earlier this year in June, Apple Inc. (NASDAQ:AAPL) faced a class-action lawsuit alleging unequal pay for women, highlighting ongoing issues in Silicon Valley.
Similarly, Goldman Sachs (NYSE:GS) settled a gender discrimination lawsuit for $215 million in May 2023, and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) agreed to a $118 million settlement in June 2022.
Earlier this month, Disney reported strong financial performance, with a 6% revenue growth in the fourth quarter of 2024.
Price Action: Disney’s stock declined 0.47% on Tuesday, closing at $115.45, followed by a 0.11% drop in after-hours trading. Year-to-date, Disney shares have risen 27.27%, slightly outperforming the Nasdaq 100 index, which is up 26.47%, according to Benzinga Pro data.
Image via Shutterstock
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
