WESTPOINT SETTLES BIAS SUIT FOR $20M
WEST POINT, Ga. — WestPoint Stevens Inc. said Monday it has settled, subject to court approval, a class action suit against J.P. Stevens & Co., alleging racial discrimination in hiring and promotion, dating back to the late Sixties.
The terms include payment of a total of $20 million, payable over three calendar years, for damages to an estimated 3,000 claimants. The amount of the settlement has been previously recognized, and there will be no impact upon the earnings of WestPoint Stevens, the firm said.
WestPoint-Pepperell, predecessor to WestPoint Stevens, assumed liability for the litigation upon its acquisition of J.P. Stevens. WestPoint Stevens pointed out it had never owned or operated the plants involved in the lawsuit and had not been charged with discrimination.