Pinterest Discrimination Settlement: $22.5M Highlights Tech Inequities

Ifeoma Ozoma and Aerica Shimizu Banks, previously part of Pinterest’s policy division, voiced allegations of racial and gender discrimination within the company to TechCrunch in June, with the expectation that Pinterest would address the issues and provide redress. However, their hopes were not realized, according to Ozoma.

Only two months later, former Pinterest COO Françoise Brougher initiated legal action against Pinterest, citing gender discrimination. This case recently concluded with a $22.5 million settlement. According to a company filing, the agreement stipulates Pinterest will pay $20 million to Brougher and her legal representation.

Ozoma characterized the situation as a clear instance of unequal treatment and discrimination.

During a conversation with TechCrunch, Ozoma and Banks highlighted a disparity in their experiences compared to Brougher’s. While Brougher secured a $20 million settlement, Ozoma and Banks received severance amounting to less than a single year’s salary.

Banks explained to TechCrunch that this situation reflects a recurring pattern in the United States where Black women pioneer efforts to expose injustice, only to see white women benefit from their work.

Earlier this month, a group of Pinterest shareholders initiated a lawsuit against Pinterest executives, including CEO Ben Silbermann, alleging they fostered a discriminatory environment. The lawsuit further claims that this culture of discrimination has negatively impacted Pinterest’s reputation and financial standing.

Ozoma and Banks, however, have stated they have explored all available legal avenues and will not be pursuing a lawsuit. Banks emphasized the significant difference in resources available to Brougher, a former COO, in comparison to their own.

Ozoma stated, “We, as in countless other instances, Black women have risked our well-being, openly shared our experiences, and essentially paved the way for others to achieve what is presented as ‘progress.’ ” She continued, “There has been no genuine progress here because the rights of those who were harmed have not been addressed.”

As part of the settlement agreement, Pinterest and Brougher will each contribute $2.5 million to initiatives aimed at “advancing women and underrepresented communities” within the technology sector.

A joint statement released by Pinterest and Brougher indicated, “Francoise is pleased with the substantial steps Pinterest has taken to enhance its work environment and is optimistic that Pinterest is dedicated to cultivating a culture where all employees feel valued and supported.”

Ozoma expressed her disapproval of the $2.5 million charitable donation, describing it as “rotten,” and pointing out that she, personally, is not a charitable organization.

TechCrunch contacted Pinterest for a response to the recent statements made by Ozoma and Banks. Pinterest declined to provide a comment, citing its policy of not commenting on ongoing legal matters. However, in June, Pinterest released a statement to TechCrunch:

In August, following Brougher’s lawsuit, Pinterest employees organized a walkout. In addition to the walkout, a petition was circulated internally, demanding systemic changes. These changes included complete transparency regarding promotion levels and employee retention, full disclosure of compensation packages, and a requirement that at least 25% of individuals within two reporting levels of the CEO be women and 8% be underrepresented employees.