California Apparel News

To settle a class-action lawsuit alleging racial discrimination against African-Americans, The Wet Seal Inc. agreed to pay $7.5 million, including $5.58 million in relief and damages, to its African-American staff that was fired in its King of Prussia, Penn., store in 2009.

Under the settlement, Wet Seal, based in Foothill Ranch, Calif., also agreed to change the way it will do business, according to a statement from the NAACP Legal Defense and Educational Fund and co-counsel law firms Gallagher, Schoenfeld and Lewis Feinberg, which represented the plaintiffs in Cogdell v. Wet Seal Inc. The lawsuit was filed in U.S. District Court in Santa Ana, Calif., in July.

Wet Seal must track applications to ensure diversity in applications and hiring, make sure Wet Seal’s human-resources department better investigate complaints of discrimination, and maintain a diversity and inclusion council that will advise the company on topics such as equal employment in recruiting, hiring and compensation. The company also must regularly review and make reports on hiring, promotions and termination of minority employees.

The case started in 2009 after a visit to the King of Prussia store by a former senior vice president who discovered that then-manager Nicole Cogdell is an African-American.

Soon after, Cogdell was fired.

The lawsuit charged that former executives at Wet Seal directed managers to get rid of African-American store management employees for the sake of the company’s brand image and to hire more white employees.

Cogdell said she had been appalled to learn she was being terminated because of her race but was glad change had taken place. “It was important for me to be a force for change, but I could not have done it without the support of other employees who spoke out against discrimination,” she said. “Wet Seal has now committed to strong, fair policies because we took a stand. I hope these changes will create opportunities for all deserving employees, regardless of their race.”