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Walgreens to settle race lawsuit | Walgreens to settle race lawsuit |
(about 2 hours later) | |
America's largest pharmacy chain, Walgreens, 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 Walgreens 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 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. | "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. |
Walgreens, which 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 money | Sharing the money |
The EEOC launched its case after carrying out an investigation into 12 complaints filed by current and former Walgreens 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 $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. | 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. |
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. | 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. |