On October 26, 2005, two African-Americans brought a class action lawsuit in the U.S. District Court for the Southern District of New York against their employer, Ikon Office Solutions. Plaintiffs alleged that Ikon followed discriminatory employment practices by refusing African-American employees equal pay, promotion opportunities, and hiring opportunities, creating a hostile work environment, and retaliating against African-Americans for complaining about such discrimination. Plaintiffs claimed that as a result, Ikon violated Title VII of the Civil Rights Act as well as state anti-discrimination laws. Plaintiffs sought declaratory and injunctive relief, damages, and attorney fees.

On August 3, 2006, the plaintiffs amended their complaint to include more detailed allegations and two additional plaintiffs. On July 26, 2007, the parties drafted and submitted a settlement agreement to the Court. On October 30, 2007, the Court (Judge Paul A. Crotty) granted preliminary approval of the agreement. Following a fairness hearing on the agreement, the Court granted final approval of the settlement agreement.

The agreement defined the class as all African-American individuals employed by Ikon's Legal Document or Management Services in New York, between January 1, 2001 and December 31, 2005. Upon approval of the agreement and by its terms, the Court ordered Ikon to pay a total of $175,000 to the named plaintiffs, and awarded plaintiffs' class counsel $436,500 in attorney fees and costs. The agreement further required Ikon to set up a fund to pay settlement checks to any class members that qualified for a claim, including the named plaintiffs. The agreement also addressed a charge filed by an individual with the Equal Employment Opportunity Commission, dismissing it and awarding the individual $35,000, in addition to a settlement check. Though the amount paid in settlement checks is unknown, Ikon paid at least $646,500 to the named plaintiffs and their counsel.

Maurice Youkanna - 07/31/2014


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