Wet Seal To Pay $7.5M To Settle Race Bias Suit

Law360, Philadelphia (May 9, 2013, 5:02 PM EDT) -- Clothing retailer Wet Seal Inc. on Thursday agreed to a $7.5 million settlement in a class action launched in California federal court by a Pennsylvania store manager who alleged that the company created a hostile environment for African-American management employees.

The settlement, announced by the NAACP Legal Defense and Educational Fund Inc. and Wet Seal, includes at least $5.58 million in payments to current and former African-American managers. The retailer has also committed to steps intended to increase diversity and combat discrimination.

Lead plaintiff Nicole Cogdell,...
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