The Texaco race-discrimination lawsuit has been officially settled for $176 million, the largest settlement of its kind in U.S. history.
Federal Judge Charles Brieant called the settlement "fair and reasonable and highly beneficial" to the plaintiffs. His decision was dated Friday and released Tuesday.Texaco spokesman Chris Gidez said the company entered into the settlement and other diversity programs "first and most important because they are the right thing to do; second, they make good business sense. We look forward now to achieving the success we know will be the product of these efforts."
The settlement was reached soon after the disclosure in November of secret tape recordings on which Texaco executives allegedly belittled black employees and plotted the destruction of evidence in the race case.
The suit claimed Texaco had a racist corporate culture and discriminated against blacks in pay, promotions and workplace behavior.
The settlement calls for Texaco to designate $115 million for lump-sum payments to salaried black employees who worked for the company between March 23, 1991, and Nov. 15, 1996.
The average award to the 1,348 plaintiffs would exceed $63,000.
Salaried blacks still with Texaco will get 11 percent pay raises worth an estimated $26 million over five years.