The Reemergence of Discrimination Class Actions: Guidance for Rational Employers, as appeared in BNA's Daily Labor Report

Barry Asen, Carmine A. Iannaccone, Michael S. Kun

Epstein Becker & Green, P.C.

On the same day the attached article was published (see below for a link to the PDF file), a federal district court in New York granted final settlement approval in Velez v. Novartis Pharmaceuticals, a recent and highly-publicized class action discussed in the article.

As the article states, earlier this year, a New York jury awarded, among other damages, $250 million in punitive damages against Novartis to a class of female sales representatives who alleged pay and promotion sex discrimination. The settlement just approved by the court will cost Novartis more than $215 million. Specifically, $152.5 million will be distributed among 5,600 class members; an additional $22.5 million is designated for the revamping of various employment practices; and $40+ million is allotted for witness and attorneys' fees.

Separately, on November 30, 2010, Novartis announced a restructuring plan that will result in the elimination of approximately 1,400 jobs from its U.S. sales force.

With respect to another significant case discussed in the article, Dukes v. Wal-Mart, the Supreme Court announced on December 6, 2010, that it has granted the company's request to review a lower court's certification of a class of about 1.5 million women in the largest employment discrimination class action ever certified.