Disney Settles Pay-Equity Class Action Lawsuit for $43 Million – TheWrap
Disney has settled a pay equity class action lawsuit for $43.25 million. The lawsuit, filed in 2019 by Disney employees LaRonda Rasmussen and Karen Moore, accused the company of underpaying women compared to men. This case later grew to include 9,000 female employees who alleged they were paid less than male colleagues for similar work.
After reaching a settlement with plaintiffs represented by Andrus partner Lori Andrus in October, Disney is now moving to resolve the matter. The trial was initially scheduled for May 2025 but has been avoided through this settlement.
Andrus praised the bravery of Rasmussen and the other women involved, highlighting their courage in standing up against pay discrimination at Disney. Additionally, she noted that Disney has agreed to conduct annual pay equity reviews to further support fair pay practices, which could enhance the company’s reputation as a California employer.
Initially, Disney attempted to stop the class action, contending that each woman should file an individual lawsuit. However, the judge ruled against this argument on December 8, 2023, allowing the case to move forward as a class action.
The settlement, expected to be officially approved by Judge Elihu M. Berle on January 10, will see Disney pay $43.25 million to the affected women. It’s important to note that this case doesn’t include other Disney-owned properties like Hulu, ESPN, and Pixar.
Overall, this settlement is a significant step towards addressing pay equity issues at Disney, ultimately benefiting thousands of female employees impacted by this lawsuit.
