Litigation against directors and officers over diversity was once a fairly uncommon occurrence. But that all changed in 2020 when a number of lawsuits were filed against several high profile companies, including Facebook and The Gap, Inc., regarding the lack of diversity on their boards of directors, senior executive leadership teams and overall employee base.
At a time of heightened awareness of the many issues and obstacles that black people and ethnic minorities face every day, directors and officers are facing greater scrutiny of how their companies respond to the call for greater diversity and inclusion. Recent lawsuits against large, public companies suggest that the escalating chance of a company being sued over its diversity practices.
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