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Walgreen to settle race lawsuit Walgreens to settle race lawsuit
(about 4 hours later)
America's largest pharmacy chain, Walgreen, has agreed to pay $20m to settle a federal lawsuit alleging discrimination against black workers. America's largest pharmacy chain, Walgreens, has agreed to pay $20m to settle a federal lawsuit alleging discrimination against black workers.
The Equal Employment Opportunities Commission (EEOC) - a watchdog agency - says Walgreen sent black staff to low-performing stores in black areas.The Equal Employment Opportunities Commission (EEOC) - a watchdog agency - says Walgreen sent black staff to low-performing stores in black areas.
African-American employees, including pharmacists and managers, were also denied promotions, the EEOC claims.African-American employees, including pharmacists and managers, were also denied promotions, the EEOC claims.
The settlement deal must still be approved by a federal judge.The settlement deal must still be approved by a federal judge.
"We commend Walgreen for working cooperatively with us to reach an amicable settlement of this case without protracted litigation," EEOC Chair Naomi Earp said in a statement. "We commend Walgreens for working cooperatively with us to reach an amicable settlement of this case without protracted litigation," EEOC Chair Naomi Earp said in a statement.
Walgreen, who has denied the allegations throughout, said it was glad to have resolved the issue. Walgreens, which has denied the allegations throughout, said it was glad to have resolved the issue.
Sharing the moneySharing the money
The EEOC launched its case after carrying out an investigation into 12 complaints filed by current and former Walgreen staff across the country. The EEOC launched its case after carrying out an investigation into 12 complaints filed by current and former Walgreens staff across the country.
Most of the complaints in the class action suit came from workers and former staff in St Louis, Florida, Detroit and Kansas City.Most of the complaints in the class action suit came from workers and former staff in St Louis, Florida, Detroit and Kansas City.
Lawyers say the $20 million (£9.8 million) will be split among lawyers who handled the case and the more than 7,500 employees who brought a class action against the company. Lawyers say the $20m (£9.8m) will be split among lawyers who handled the case and the more than 7,500 employees who brought a class action against the company.
Walgreen says it is the largest US pharmacy chain by sales, with more than 5,638 stores in 48 states and Puerto Rico, and recorded sales of $47.4bn (£24.5bn) in the 2006 financial year. Walgreens says it is the largest US pharmacy chain by sales, with more than 5,638 stores in 48 states and Puerto Rico, and recorded sales of $47.4bn (£24.5bn) in the 2006 financial year.