Business & Tech

Wet Seal Pays Millions to Settle Racial Discrimination Lawsuit

The trendy clothing retailer will pay a reported $7.5 million to settle a class action lawsuit, which originated after a manager from King of Prussia was fired for being black.

NORRISTOWN, PA -- Nicole Cogdell was working as a manager at Wet Seal in 2009, when she overheard the company's executive vice president tell the district manager that she "wasn't the right fit for the store" and that they needed someone "with blonde hair and blue eyes."

Days later, Cogdell, a black woman, was fired from her job.

Cogdell wasn't alone, however, as her assistant manager, Myriam Saint-Hilaire, and Kai Hawkins, who worked at The Gallery mall in Philadelphia, were also let go, according to Philly.com. Later, an email was sent by an executive stating the retailer needed to diversify its workforce, as it was too African-American.

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The three women filed a federal discrimination suit last year in California against Wet Seal, and in December, the Equal Employment Opportunity Commission determined that Wet Seal executives had racially discriminated against them.

On Wednesday, Wet Seal announced that they would pay $7.5 million to settle the case, according the Los Angeles Times, with at least $5.58 million going into a fund to cover damages to current and former African-American managers.

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“With this settlement, Wet Seal is attempting to right its wrongs.” said Sherrilyn Ifill, director-counsel of the NAACP firm which represented the three women. “The fight for equality in the workplace is far from over in America.”

The article in the Times states that the retailer has purged their board and replaced their chief executive earlier this year. They've also agreed to make numerous changes, including tracking applications to ensure diversity and expanding their human resources department.

"We are pleased to put this matter behind us as we continue to be committed to non-discriminatory employment practices that create a welcome environment for people of all backgrounds," said John Goodman, who became CEO in January, in a report by USAToday.

As for Cogdell, she's happy to see that her efforts resulted in appropriate action.

"Being targeted for termination from a job I loved because of my race was a nightmare," said Cogdell, in a statement released by the NAACP. "Wet Seal has now committed to strong, fair policies because we took a stand."

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