Wet Seal to Pay $7.5 Million to Settle Discrimination Lawsuit


PHILADELPHIA— Wet Seal Inc. has agreed to pay $7.5 million to settle a federal racial discrimination lawsuit filed by three of the retailer's former employees.

The NAACP Legal Defense Fund and Wet Seal announced the agreement May 9.

The former employees at Philadelphia-area stores claimed management set out to fire African-Americans because they didn't fit the retailer's "brand image."

Wet Seal CEO John D. Goodman says in a statement that the company appreciates the insights gained in the lawsuit and is committed to nondiscriminatory employment practices.

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Wet Seal to Pay $7.5 Million to Settle Discrimination Lawsuit

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