Women settle with big realty company
Female employees of real estate brokerage CB Richard Ellis Group Inc. may recover as much as $150,000 in damages each under terms of a class-action sexual harassment lawsuit settlement reached this week.
The total cost of the settlement is unclear, but women who worked for the Los Angeles-based company in the last eight years may pursue claims, according to papers filed Thursday in U.S. District Court in Chicago.
CB Richard Ellis is the largest commercial real estate services firm in the world, with about 24,000 employees.
Commercial real estate brokerage has traditionally been a male-dominated industry, and most brokers are men who work primarily on commission.
The suit was initiated by Amy Wiginton, a former marketing director in the company’s office in Oak Brook, Ill., who claimed that she was subjected to lewd remarks, unwanted groping and sexual propositions by male co-workers.
Four other plaintiffs, including one in Beverly Hills, joined the suit, alleging that a nationwide pattern and practice of sexual harassment existed at the company.
They also claimed that pornographic material was distributed via e-mail and displayed on office computers.
CB Richard Ellis admitted no wrongdoing in the matter and said the settlement was in the best interest of the company and its shareholders and would allow the company to move forward.
“We have policies, procedures and training regarding prevention of harassment, as well as a vibrant ethics and compliance program,” said Larry Midler, the firm’s general counsel.
“As part of the settlement we agreed to further strengthen some of these measures, which is in keeping with our goal of maintaining a great workplace where all of our employees can grow and succeed,” he added.
Midler declined to comment further, but court documents and a statement prepared by both sides described a three-tier settlement process available to thousands of women who worked for the company starting in 1999.
“We are of course very pleased,” attorney Kenneth Wexler, lead counsel for the women, told Bloomberg News.
Women who say they were subject to sexual harassment or discrimination can recover $1,500 without revealing their identities to the company if they prove their claims to an arbiter approved by both parties.
A second tier of claimants can collect as much as $15,000 by submitting paperwork to the arbiter, but their names must be disclosed to CB Richard Ellis, which may file documents disputing the claims.
Claimants in the third tier could collect as much as $150,000 but would be subject to full arbitration hearings with witnesses. The process is expected to be completed next year.
Wiginton will receive $125,000 and the other four named plaintiffs will receive a total of $225,000 under terms of the settlement.
CB Richard Ellis also will pay attorneys’ fees of $3.4 million and donate $400,000 to the trade group Commercial Real Estate Women Network for the establishment of scholarships to promote the advancement of women in the industry.
When the suit was launched in 2002, some observers said it could become one of the largest class-action sexual harassment lawsuits ever filed, but it may not have much of an effect on the company’s bottom line. CB Richard Ellis reported a profit of $141 million on revenue of $1.5 billion in the second quarter.
“It’s not going to be a considerable financial burden on CB,” said real estate stock analyst Craig Silvers of Bricks & Mortar Capital.
“Obviously management thought any costs or losses from this lawsuit would be immaterial because the lawsuit was not discussed” in company filings with the Securities and Exchange Commission, Silvers said.
Shares of CB Richard Ellis stock rose 92 cents Friday to $28.62. The stock has declined 14% this year.
