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August 18, 2009
Dell to Pay $9.1 Million to Settle Gender Bias Suit

Dell, Inc. has agreed to pay $9.1 million to settle a class action gender discrimination lawsuit. Brought by two female former senior managers in October 2008, the lawsuit claimed that Dell systematically discriminated against women in pay and promotions.

$5.6 million of the settlement will cover payments to women who were in certain job grades between early 2007 and the end of 2008, the Austin American-Statesman reported. According to the Statesman, $1.1 million of that fund will pay plaintiffs’ legal costs.

The remaining $3.5 million will be used to make base pay adjustments to women currently in two job grades covered under the lawsuit. As part of the settlement, Dell will bring in outside experts to review compensation, hiring and promotion practices and evaluate pay equity, the Statesman noted.

Dell did not admit wrongdoing as part of the settlement. In a joint news release, both parties called the settlement “a resolution that’s in the best interest of Dell and its employees.”