November 27, 2021
Social media platform Pinterest agreed to a series of diversity, equity and inclusion workplace reforms to settle a lawsuit by shareholders lead by the Rhode Island pension system, General Treasurer Seth Magaziner announced.
The reforms are valued at $50 million and resolve shareholder complaints that Pinterest’s Board of Directors failed to respond to allegations of discrimination against women and people of color working at the company.
Magaziner, who is running for governor, called the settlement the “first of its kind to embrace diversity goals around a company’s product.”
“The proposed settlement calls for sustained efforts by Pinterest that will put diversity, equity, and inclusion (“DEI”) at the forefront of its internal goals and business operations,” the proposed settlement filed in federal court Wednesday said. “Additionally, it will resolve this highly contested, complex derivative action while delivering long-term meaningful benefits to Pinterest and its stockholders.
The terms of the settlement include having Pinterest do regular pay equity assessments, making the platform user experience more inclusive, creating “executive accountability for DEI culture” and releasing former employees who made race or gender discrimination claims from non-disclosure agreements.
Read Pinterest to Undergo Corporate Diversity Reform to Settle Suit Led by RI General Treasurer.