Pennzoil Settles Bias Case for $6.75 Million

Pennzoil Co. said it has reached a $6.75-million settlement with current and former African American employees, who sued the company in a complaint that sought class-action status and alleged racially discriminatory employment practices over a four-year period. The lawsuit, filed in U.S. District Court in Houston, was brought by 11 named plaintiffs on behalf of all salaried African Americans who had worked for Pennzoil between Aug. 16, 1994, and Aug. 17, 1998. The settlement does not constitute an admission of liability by Pennzoil, the company said. The federal court must approve the settlement. All African American employees, past and present, eligible to participate in the settlement must be notified, the Houston-based company said. Although the case named 11 plaintiffs, the settlement, minus court-approved legal fees and expenses, will be available for distribution to about 700 salaried African Americans who worked at Pennzoil during the designated four-year period and who are potential members of the class. Pennzoil’s stock fell $1.44 to close at $34.94 on the New York Stock Exchange.