1. Google settles a class action lawsuit for $28 million regarding workplace discrimination. 2. The lawsuit claims pay and career advancement bias towards white and Asian employees.
The lawsuit and settlement reveal potential systemic issues in governance. Similar situations have negatively affected other companies’ stock performance due to reputational damage and legal risks.
Addressing workplace discrimination is crucial for corporate reputation, impacting stockholder perceptions. The high settlement amount may indicate further scrutiny from investors.
Immediate investor sentiment may be swayed due to reputational concerns, impacting short-term stock prices. Historical instances show settlements can cause initial stock drops.