The entertainment giant has agreed to pay $43.25 million to settle a long-running class-action lawsuit over alleged gender-based pay discrimination, marking a major development in a case that has spanned five years.
The settlement, which awaits final court approval, will benefit up to 14,000 female Disney employees who worked at the company between 2015 and present day. The agreement comes after the case was certified as a class action in December 2022.
The lawsuit, initially filed in April 2019 by Disney employees LaRonda Rasmussen and Karen Moore, alleged that the entertainment giant violated California's Equal Pay Act and Fair Employment & Housing Act by paying male employees more than women for equivalent work.
As part of the settlement terms, Disney will bring in external consultants to review and improve its pay equity practices. The company has also committed to working with outside economists on compensation equity matters for the next three years.
"We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case, and we are pleased to have resolved this matter," a Disney spokesperson stated.
Lead plaintiffs' attorney Lori Andrus praised the women who initiated the lawsuit, noting they "risked their careers to raise pay disparity at Disney." Andrus expressed optimism about Disney's commitment to conduct annual pay equity reviews.
The settlement amount is notably lower than earlier projections, which estimated potential damages could reach $300 million. The agreement excludes women employed at Disney subsidiaries including Hulu, ESPN, Pixar, and former Fox properties.
A final approval hearing is scheduled for January 10, 2025, before Judge Elihu M. Berle in Los Angeles Superior Court, where the settlement terms will be reviewed for final authorization.
The resolution comes ahead of the originally scheduled May 2025 trial date, bringing closure to a case that faced multiple attempts by Disney to have it dismissed or limited in scope.