December 2, 2020
The Employees’ Retirement System of Rhode Island says they breached their fiduciary duty.
The Employees’ Retirement System of Rhode Island is suing board members and top executives at Pinterest, alleging that they engaged in or ignored discrimination at the company.
The $8.5 billion retirement system, which is a Pinterest shareholder, is suing them on behalf of the company itself and the Laborers’ District Council and Contractors Pension Fund of Ohio.
The complaint follows a tough year for Pinterest: Black executives Ifeoma Ozoma and Aerica Shimizu Banks spoke out during the summer about being underpaid and discriminated against. Ex-chief operating officer Francoise Brougher filed a lawsuit soon after, alleging gender bias.
According to the retirement system’s complaint, filed on November 30, the company’s “white, male leadership clique” breached their fiduciary duty by “perpetrating or knowingly ignoring the long-standing and systemic culture of discrimination and retaliation at Pinterest.”
The retirement system alleged that this led to lawsuits, settlements, and a hit to the company’s reputation that ultimately affected Pinterest’s market value.
Read Retirement System Sues Pinterest Board and Execs Over Discrimination.