Judge Questions Elements Of Pinterest’s $50 Million Deal To Improve Culture
A federal judge in San Francisco has questioned a $50 million deal between social media platform Pinterest and some of its shareholders to improve the company’s handling of issues of gender and race.
US District Judge William Alsup said that he would tentatively approve the deal, which would see Pinterest commit $50 million to diversity, equity and inclusion (DEI) initiatives over a decade-long period. However, Alsup said he believes other shareholders should have the opportunity to decide whether it requires an enforcement mechanism.
In 2020, a lawsuit, filed after former employees went public about alleged mistreatment, accused Pinterest executives and directors of contributing to a culture of race and sex discrimination. Last November, the parties reached a tentative settlement, though the company’s executives and directors denied any wrongdoing. The settlement was the first of its kind to require DEI audits and incorporate DEI goals for Pinterest’s business and its workplace.
However, Alsup has queried the $50 million deal, stating that requiring the directors of the company, some of whom were the ones sued, to oversee reforms was like handling “the chicken coop over to the wolves.”
