Ford Motor Co. agreed Wednesday to pay more than $4 million to settle a class action lawsuit alleging it discriminated against black employees.
The settlement was announced by the U.S. Department of Justice in Manhattan.
The DOJ announced the settlement Wednesday in response to a lawsuit filed in March by the same lawyers who brought the suit.
Ford said it will pay $5 million to cover the attorneys’ fees and costs.
Ford admitted in the lawsuit that its policies did not recognize or address “the diversity concerns raised by plaintiffs,” including that the company had not created a comprehensive diversity policy for its workforce.
The department’s complaint alleged that Ford had failed to establish policies that specifically addressed racial and ethnic diversity and that its hiring practices and promotions were discriminatory against women.
Ford was accused of “failing to create and enforce clear and consistent policies that will ensure equal opportunity in employment and promotion for all people.”
Ford also agreed to provide more than 1,000 former and current employees with financial assistance to cover their legal fees and other expenses.
Ford did not immediately respond to a request for comment.
Ford had agreed to pay the plaintiffs $4,547.80 per plaintiff in a separate settlement in January, according to a DOJ filing.
The new settlement includes $4-million to cover attorneys’ costs and a $2.3-million payment to cover attorney fees.
In April, a judge in Michigan rejected Ford’s attempt to force the state to pay millions of dollars in back pay to former employees and others who were fired after the company settled a federal lawsuit.
The Michigan workers’ group said Ford’s “deliberate and systemic failure to promote, train and retain qualified African American employees and to address and eliminate racism, discrimination and other issues of systemic bias” resulted in “hundreds of Black and Brown workers being unfairly terminated.”