Compliance April 8, 2005

Company Gets $6 Million Back From Discrimination Settlement

April 8, 2005 (PLANSPONSOR.com) - At the end of a bitter legal battle, Eagle Global Logistics has recovered nearly $6 million that it had previously set aside as part of an unusual discrimination settlement made with the Equal Employment Opportunity Commission (EEOC).
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>The Houston-based global transportation, supply chain management and information services company had, when it settled a sex and race discrimination case with the EEOC, been ordered to set aside $8.5 million in a fund for potential claim settlements, according to the Houston Chronicle. However, after three years, only 10% of the over 2,000 claims had been found to contain any merit.

>After the three years, the company had requested that the money be returned, suing the EEOC and claiming that it had been overzealous and vindictive, according to the paper.

>In February, a federal judge ruled that Eagle should get $6 million back, and transfer $1.4 million into a Leadership Development Program, which was created as part of the settlement. The fund had only paid out $900,000 in back wages and damages for discrimination charges.

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