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Pinterest settles lawsuit alleging racial and gender discrimination

It'll also spend $50 million on reforms based on the discrimination allegations.

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Sean Keane Former Senior Writer
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Pinterest shareholders reportedly accused the company's directors of failing to address a culture of discrimination.

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Pinterest has settled a lawsuit alleging discrimination against racial minorities and women in its workplace, the company confirmed to CNET via email. The image-sharing social media site also pledged to spend $50 million to promote diversity, but further financial details of the settlement weren't revealed.

Company shareholders accused the board of directors of failing to react to the culture of discrimination that had developed, as previously reported by the New York Times and NBC News.

The allegations arose after former employees Ifeoma Ozoma and Aerica Shimizu Banks, both of whom are Black women, said in June 2020 that they'd been subject to racial discrimination and faced retaliation after raising concerns about unfair pay.

Two months after that, former chief operating officer Francoise Brougher sued Pinterest for allegedly excluding her from important decisions after refusing to "take a back seat to her male peers." The company settled Brougher's suit for $22.5 million last December.