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Jurors Clear Boeing in Discrimination Suit

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From Bloomberg News

Boeing Co. didn’t discriminate against black salaried employees in promotions, a Seattle jury found Wednesday, rejecting a claim filed on behalf of about 4,000 workers.

The class-action lawsuit claimed that Chicago-based Boeing, starting in 1994, denied promotions, discouraged blacks from applying for higher positions and failed to enforce company antidiscrimination policies. Boeing denied any discrimination, and the federal court jury in Seattle agreed.

The verdict came in a case that Boeing had initially settled for $15 million. An appeals court reversed the settlement in 2002 as unfair and sent it back to federal court in Seattle, where the class was reduced from 15,000 to about 4,200. The lawsuit covered black salaried workers at plants in states including Washington, Kansas and Pennsylvania.

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“This favorable verdict helps Boeing’s reputation since it serves as an example that it is committed to good ethical practices,” said Matthew Spahn, a New York-based analyst with TCW Group, which owned more than 2.36 million Boeing shares at the end of September.

Attorneys for the workers said they had not decided whether to appeal the verdict. Boeing may still have to pay some damages to the workers on a claim that the company unintentionally allowed discrimination, the company said.

The lawsuit was filed in 1998. The two sides agreed to the $15-million settlement in 1999. That accord was reversed after some workers said the deal was unfair, partly because $4 million would have gone to plaintiffs’ lawyers.

Shares of Boeing fell 35 cents to $70.39.

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