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A California federal judge awarded $2.5 million in additional legal fees on Thursday to attorneys monitoring Pinterest's adherence to a settlement agreement that resolved investor claims of race and sex discrimination within the company. U.S. District Judge William Alsup expressed satisfaction with both Pinterest and the investors' legal teams for their efforts to ensure compliance since the settlement was reached.

Pinterest pays $2.5M in legal fees : Monitoring Compliance with Reforms

The fee request, made by the investors' attorneys from Renne Public Law Group and Cohen Milstein Sellers & Toll PLLC, went unchallenged by Pinterest. This latest award comes on top of the $2.5 million in fees Judge Alsup approved in 2022, when he initially signed off on the settlement. Under the terms of the agreement, Pinterest committed to investing $50 million in corporate reforms over a ten-year period to foster a more inclusive workplace. The settlement followed a shareholder derivative lawsuit filed in November 2020, alleging that Pinterest maintained a "systematic culture, policy and practice of illegal discrimination on the basis of race and sex" since at least 2018.

Pinterest pays $2.5M in legal fees : Positive Progress Noted

During the past two years, the investors' legal team has worked with Pinterest to monitor compliance, submitting biannual reports to the court. In his order, Judge Alsup highlighted the recent reports, which indicated that Pinterest leadership has not only met but in some cases "exceeded expectations" in achieving the goals set by the settlement. Judge Alsup, who was initially skeptical of the settlement's effectiveness, now acknowledges the progress Pinterest has made. "I'm satisfied with Pinterest's compliance and plaintiffs' monitoring that compliance," he stated. According to the order, Pinterest's diversity initiatives have already shown results. Women in leadership roles at the company increased from 33% to 40% by June 2023. The company also launched a pilot program to gather information on systemic issues that could hinder a diverse and inclusive environment. Additionally, Pinterest implemented the "Inclusive Product Program," which uses artificial intelligence to ensure diverse representation in content, particularly focusing on body types, shapes, and sizes.

Settlement Background and Judge's Oversight

The original lawsuit came in the wake of allegations by former female employees who claimed they were marginalized, excluded from meetings, and paid less than their male counterparts. The settlement, finalized in 2021, required Pinterest to undergo third-party assessments of its race, gender, and equity practices. These assessments are designed to ensure equitable pay, promotions, and leveling within the company, with progress reported to shareholders.