
The Walgreen Company (NYSE:
WAG) was hit with some disappointing news yesterday from the Equal Employment Opportunity Commission. The agency decided to file a class action
lawsuit of discrimination based on a 2005 lawsuit brought against the company.
According to an article in today's
New York Times, some black employees felt that they were
discriminated upon based on their race when the company handed out job assignments. Walgreen has been denying the charges which some officials in the E.E.O.C. have described as the biggest discrimination suit in the past few years.
In the lawsuit both current and former Walgreen employees have accused the company of some pretty serious charges. They claim that Walgreen based job assignments on race and went a step further to geographically locate some black employees in predominantly black neighborhoods or less-desirable ones.
One lawyer from the E.E.O.C. stated that after reviewing some of the case details he determined that Walgreen's had frequently assigned black managers to poorer performing stores and thus limiting their chances of getting coveted job promotions. He also went on to say that black managers were paid less than white employees holding the same positions.
There have been no monetary amounts set forth in the suit as of yet, but the E.E.O.C. laid out their goals in an
official statement that they would be seeking monetary damages as well as changes in the overall company policy.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.