Disney to Pay $43 Million In Class Action Pay Equity Lawsuit
The long-gestating Disney pay equity class action lawsuit has finally ended, with the Mouse House agreeing to pay $43.25 million to 14,000 eligible class members.
As a quick recap, the class action lawsuit was initially filed five years ago by two former Walt Disney Studios employees, LaRonda Rasmussen and Karen More. In the lawsuit, they claimed that Disney did not pay its female employees equally.
Photo: Disney
Moreover, the lawsuit was filed by 14,000 female employees who either still work for the company or were employed between 2015 and today. The lawsuit was certified as a class action suit last December.
Disney’s Initial Defense Was Rejected
While Disney initially fiercely denied the charges, its defense increasingly relied on technicalities. After Court Judge Elihu M. Berle dismissed Disney’s argument that the calculations would be impossible as the claims constituted “an assortment of individual claims, based on highly individualized allegations,” the writing was on the wall.
Photo: Disney
A few weeks ago, Disney quietly settled the lawsuit. The case was then expected to go to trial next year. Now, we know what the final payout will be.
The Final payout
While $43.25 million is not chump change, it is far less than the $300 million estimated when the class action suit began. In addition to the payment, Disney agreed to hire outside consultants to help develop better practices regarding pay equality.
Photo: skillastics.com
According to Deadline, Disney will also cooperate with an external economist for three more years to ensure the quality of compensation.
“We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case, and we are pleased to have resolved this matter,” a Disney spokesperson told Deadline today.
The Walt Disney Company. Photo: Disney
At this time, the plaintiff’s attorneys have not responded to the settlement.
What Happens Next
Now that the settlement has been agreed upon, Judge Elihu M. Berle must approve it on a January 10, 2025, court date. By the look of things, however, the matter will soon be laid to rest.
Photo: Miriam-Webster
