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Sterling Jewelers, the American diamond empire that owns Jared and Kay Jewelers, has agreed to pay $175 million to settle a long-fought class action lawsuit alleging the company has used tens of thousands of women in its payroll and promotion practices for years discriminates .
The case, filed in 2008, became a hallmark of #MeToo activism after some of the women revealed to The Washington Post in 2017 that they had been pressured into complying with their bosses’ sexual demands in order to get a promotion or stay on the job.
The class was made up of about 68,000 women who had mostly worked as saleswomen in the jewelry stores between 2004 and 2018. Her lawyers argued that the company’s wage rules negatively affected women and that women were far less likely to receive promotions than they deserved.
A private arbitration hearing is scheduled for this September, lawyers for the women who announced the settlement on Thursday said. The lawsuit was delayed for so many years that one of the 15 named plaintiffs in the case died before it was resolved.
Sterling operates some of the largest jewelry retail chains in the country and has been famous for its mall boutiques and television commercials, including “Every Kiss Starts With Kay,” for years.
The lawsuit’s claims were limited to sexual discrimination in pay and promotion, not sexual harassment or assault. But as part of the case, women filed affidavits saying they were routinely groped, harassed and coaxed into providing sexual favors, including at boozy company parties.
“If you didn’t do what he wanted with him,” a former employee said in a 2012 statement, “you wouldn’t get your (preferred) store or your raise.”
Hundreds allege sexual harassment and discrimination at jewelry company Kay and Jared
Gina Drosos, who replaced Mark Light as chief executive of Sterling’s parent company Signet Jewelers shortly after The Post 2017 report, said in a statement that the company has been working on improving the company’s “business model and culture” for the past four years to transform to create a “a welcoming and inclusive environment where everyone is invited to be their authentic selves.”
“This settlement is an important step in closing a nearly 15-year-old case,” she said. “We look forward to continuing our focus on diversity as a key business strategy for Signet and driving the innovation, growth and opportunities that enable our team and company to shine.”
Lead counsel for the plaintiffs, Joseph Sellers of the law firm of Cohen Milstein Sellers & Toll, said the legal team saw no evidence that the wrongdoing women had referred to in their earlier testimonies had taken place in the years since the Company had announced a number of reforms.
Signet, which admitted no liability as part of the settlement, said it stopped the payment and carriage practices at the heart of the lawsuit. The company said it also now offers mentoring and leadership training programs for women and has strengthened a system for reporting and investigating complaints of workplace abuse.
Sellers said in an interview that the settlement “would ensure that the practices that led to the case will never be repeated at the company.”
Sterling discrimination case highlights differences between arbitration and litigation
The settlement, which must be approved by an arbitrator, would pay members of the class about $125 million. The rest is accounted for by legal and legal fees.
The case also highlighted the then-widespread corporate rules that required victims of sexual harassment or assault to bring claims against their employers only in private arbitrations, where the proceedings were largely confidential.
President Biden signed legislation in March ending forced arbitration in such cases and allowing survivors to file lawsuits in public courts.
Signet agreed to a separate $240 million settlement in 2020 to resolve claims from shareholders who accused the company of concealing allegations of sexual harassment related to top executives.