Top Female Human Resources Execs at Dell, Inc. File Gender Discrimination and Age...

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Wed Oct 29, 2008 12:51pm EDT

Top Female Human Resources Execs at Dell, Inc. File Gender Discrimination and
Age Layoff Class Action

Seek $500 Million in Damages, Changes in Pay & Promotion Policies Set By All
Male 14-Member Leadership Team Headed by Michael Dell

SAN FRANCISCO, Oct. 29 /PRNewswire/ -- Seeking to put a stop to the spate of
recent layoffs unfairly targeting women and employees over 40, and gross pay
and promotion inequities at Dell, Inc., four former high-level female Human
Resources executives today filed a class action discrimination suit against
the company in U.S. District Court in the Northern District of California.

The four senior HR women accuse the world's second largest computer
manufacturer of systemic discrimination in blocking women across the company
from breaking into the top ranks of what a Dell male Vice President, Michael
Summers, calls the "old boy networks in Dell."  The plaintiffs, who as HR
specialists are intimately familiar with the company's employment practices,
seek to change Dell's discriminatory policies regarding pay, job placement,
promotion, and termination.  The lawsuit demands $500 million in damages for a
class of thousands of current and former Dell female managers and executives,
and older employees disproportionately affected by the company's mass layoffs
in 2007 and 2008.  

The four plaintiffs and the class are represented in this matter by Steven L.
Wittels, David W. Sanford, and Janette Wipper, who head teams of lawyers from
Sanford Wittels & Heisler's San Francisco, Washington, D.C. and New York City
offices.

"While Dell publicly proclaims a commitment to diversity as 'an essential
element of our corporate values,' the reality fails to live up to the
rhetoric," said Mr. Wittels, Class Counsel in the case.  "At Dell, it is an
understatement to say that women face a glass ceiling; Dell's glass ceiling is
made of concrete."

According to Dell's own website, the company is headed by an exclusively male
fourteen-member Executive Leadership Team.  This team recently engineered mass
layoffs of more than 8000 employees, which the suit claims singled out women
and older employees.  While recent statements by Michael Dell suggest the
layoffs are over, plaintiffs claim the damage is done as Dell's
upper-management ranks have swelled to approximately 80 percent male. 

In an email to Bethany Riches, a former senior HR Manager and plaintiff in
this case, her VP supervisor Mr. Summers told her not "to assume it's about
you" if she had problems "breaking into arguably one of the toughest old boy
networks in Dell."  Later, the same executive informed Ms. Riches that she had
no further prospects of advancement at the company.  Ms. Riches and the other
women routinely held the same positions and handled the same responsibilities
as higher-ranking and better-compensated male executives, yet were repeatedly
denied promotions promised to them by Dell.    

Another plaintiff, former senior HR Manager Mildred "Jan" Chapman, noted that
at Dell's request she sold her family's home in Houston, relocated to Austin,
and turned down other good job opportunities in order to secure her initial
position with Dell.  A year later, she was asked to manage compensation and
global benefits for over seventeen-thousand employees in nine-countries, but
even though her responsibilities equaled or exceeded those of younger male
Directors, she was repeatedly denied a promotion to Director or any pay
increase.  Despite Dell's assurances of job security, Ms. Chapman, age 59, was
included in Dell's April 2008 layoff.

As a result of Dell's discriminatory treatment, each of the plaintiffs lost
more than a million dollars in projected salary-increases, promotion grants,
and short and long-term incentive awards.  

"Dell well knew that its recent mass layoffs unfairly impacted older people
and women," said Ms. Wipper, a member of the plaintiffs' legal team. "The
effect of the firings on top of denying these women fair compensation and
promotional opportunities has not only had an emotional toll and a negative
economic impact on their lives, but with each passing year continues to act as
a black mark on their future employment prospects."

The suit alleges that Michael Dell along with others on the 14-member
Executive Leadership Team and other senior male executives carried out and/or
assisted the discriminatory acts described in the complaint. 
Seehttp://www.dell.com/content/topics/global.aspx/about_dell/company/leadership/executive_team?~ck=ln&c=us&l=en&lnki=0&s=corp

"I have suffered from discrimination, and unfortunately I am not alone," said
Ms. Chapman.  "It's my fervent hope that this lawsuit will serve as the
necessary catalyst for creating much needed and long overdue change at Dell."

Mr. Sanford, Class Counsel for the plaintiffs, added that the case will be won
on the statistical evidence the plaintiffs offer at trial.  "The numbers don't
lie," Mr. Sanford said. "Once Dell produces its pay, promotion, and layoff
records and statistics, we are confident the truth will come out and our
clients' claims of discrimination will be vindicated."  
 



SOURCE  Sanford Wittels & Heisler LLP

Jamie Moss, +1-201-493-1027, +1-201-788-0142 (cell); or Jaime Baum,
+1-847-502-3825, both of newsPRos for Sanford Wittels & Heisler LLP
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