Qualcomm Rushes Into $19.5M Gender Bias Class Action Settlement

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In an almost unprecedented move, Qualcomm has agreed to a $19.5 million settlement and policy changes to resolve claims in a proposed class action lawsuit that alleged women employees were not paid and promoted on the same scale as men.

Approximately 3,300 current and former female employees of Qualcomm Technologies Inc. will be paid as a result of the proposed settlement, pending its final approval.

The company has also agreed to alter its corporate policies and plans to add a compliance officer as well as conduct periodic statistical analyses of its pay practices in order to keep salaries and promotions equal among men and women of similar status in the company, according to the proposed settlement.

Qualcomm and the plaintiffs reached the deal following two days of mediation that took place in April and June, according to court documents. During the mediation, both parties exchanged evidence and expert analyses of materials related to the litigation.

The proposed class action lawsuit came after former Qualcomm employee Dandan Pan filed a formal complaint with the U.S. Equal Employment Opportunity Commission the previous year, according to court documents.

“The fact that the parties were able to reach such a favorable settlement without years of risky and costly litigation is literally unparalleled,” the plaintiffs said in the motion for preliminary settlement approval. “The fact that the proposed settlement was reached by experienced counsel — informed by discovery and aided by an experienced neutral — favors approval.”

If the preliminary settlement receives final approval, each eligible Class Member would receive on average $3,953, with employees who have been with the company longer earning nearly $6,000 each per the terms of the settlement. An additional $5.85 million in fees and costs has been proposed to pay the plaintiffs’ attorneys.

Seven current and former Qualcomm employees worked together to file the proposed class action lawsuit. The women had careers in science, technology, engineering and math within the company and accused it of systemic gender discrimination that resulted from its promotion policies.

An example of the systemic gender discrimination included an allegation that Qualcomm failed to post open positions to all employees, but instead hinged career advancement on managers within the company, many of whom are males. As a result, more males than females were chosen for promotions.

The employees also alleged that mothers of children were discriminated against even further due to Qualcomm’s policy of discouraging taking leave and rewarding workers who stayed late at the office.

In total, approximately 3,290 women are included as part of the proposed Class that will benefit from the settlement if it is approved.

”The result is a truly remarkable one. The Settlement is one of the largest employment discrimination settlements in recent years and represents an excellent value for the Classes,” the motion for preliminary approval stated. “Further, the Settlement provides for comprehensive programmatic relief, valued at an additional $4,000,000, which is designed to ensure equal opportunity for women at Qualcomm.”

Qualcomm has continued to deny any allegations, and says its economic expert agreed the discrimination allegations were unfounded, according to the recent court filings.

However, it entered into the settlement to avoid the risks and delays of continuing the litigation.

“[T]he early resolution of this matter itself presents substantial benefits to the Class Members and promotes judicial economy,” the motion states.

The employees are represented by David Sanford, Felicia Medina, Xinying Valerian, Danielle Fuschetti, Ed Chapin and Jill Sanford of Sanford Heisler LLP.

The Qualcomm Gender Discrimination Class Action Lawsuit is Dandan Pan, et al. v. Qualcomm Inc., et al., Case No. 3:16-cv-01885, in the U.S. District Court for the Southern District of California.