A divided federal appeals court ruled Thursday that a shareholder of Gap Inc. cannot pursue claims in federal court seeking to hold leaders of the San Francisco-based clothing retail chain accountable for allegedly covering up racial discrimination in hiring and promotions.
The suit, filed in 2020, claimed Gap, despite statements to the government and the public about its commitment to diversity in management, employed minorities mainly in low-paying jobs at its distribution centers — where 23% of all workers were Black, compared with 4% at company headquarters and 9% among store leaders.
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