Pinterest agrees to spend $50 million on reforms to resolve allegations of discrimination.

Pinterest has pledged $50 million to overhaul its corporate culture and promote diversity as part of an agreement to resolve allegations of discrimination against women and people of color, according to court documents and statements from the plaintiffs and the company.

The settlement was announced Wednesday by Seth Magaziner, the general treasurer of Rhode Island, who was acting on behalf of the Rhode Island Employees’ Retirement System and other Pinterest shareholders who had sued the company, which is known for its colorful virtual message boards.

Shareholders had accused Pinterest’s board of failing to respond to a culture of discrimination and retaliation against women and people of color. By allowing the discrimination to continue, the shareholders argued, the board had not acted in the interests of the shareholders.

The allegations came to light when two black female members of Pinterest’s public policy team, Ifeoma Ozoma and Aeroca Shimizu Banks, publicly criticized the company’s treatment of employees, according to court documents.

Under the settlement, an audit committee of the board of directors will help oversee changes designed to create equal opportunity for employees. The changes require a board member to co-sponsor with the chief executive on diversity, equality and inclusion initiatives, according to the plaintiff’s legal team.

The settlement also releases former employees from nondisclosure agreements and creates an external ombudsman service for employees and outsiders audits that review performance ratings, promotions, and rewards for genders and racial categories.

The settlement was announced nearly a year after Pinterest agreed to pay $22.5 million to settle a lawsuit against gender discrimination and retaliation against Françoise Brougher, its former chief operating officer.

“We pushed for these sweeping reforms to support Pinterest employees with a fair and safe workplace, and to strengthen the company’s brand and performance by ensuring that the values ​​of inclusivity are placed at the heart of its identity. Pinterest,” Mr Magaziner said in a statement.

Pinterest said in a statement Wednesday that it had “reached a resolution with certain shareholders expressing concerns and pursuing derivative lawsuits regarding allegations made last year about corporate culture.”

“Since that time, we’ve worked hard to ensure our culture reflects our goals and values ​​and today’s resolution,” the company said.

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