Employment Law

KPMG Gender Discrimination

Lieff Cabraser and Sanford Heisler are Co-Lead Counsel for Plaintiffs in a gender discrimination class and collective action lawsuit against KPMG, the Big Four Accounting Firm with $26 billion in global revenue in 2017. The complaint alleges that KPMG has engaged in systemic and pervasive discrimination against its female Tax and Advisory professionals in violation of the Equal Pay Act, Title VII of the Civil Rights Act of 1964, and New York law. On July 8, 2014, Judge Schofield of the Southern District of New York granted conditional certification of the Equal Pay Act collective and ordered that notice be mailed to the affected women. Subsequently, approximately 1,100 women (current and former KPMG employees) joined to challenge KPMG’s unfair compensation.

On November 27, 2018, Plaintiffs filed a motion in U.S. District Court for the Southern District of New York seeking class certification in the long-running lawsuit challenging gender disparities in pay and promotion on behalf of approximately 10,000 female Advisory and Tax professionals. Plaintiffs also sought final certification of the Equal Pay Act collective on behalf of the approximately 1,100 opt-in plaintiffs. The motion and the reply detail how women were underpaid and under-promoted to a statistically significant degree, and the common problems with KPMG’s pay and promotion policies and practices. It also describes a culture rife with gender discrimination, sexual harassment, and retaliation. The Court held a hearing on the motion, not previously filed on the public docket, in August 2018.

On November 30, 2018, the Court declined to certify the class and decertified the Equal Pay Act collective. While the Court acknowledged KPMG’s common pay and promotion policies and its gender disparities in pay and promotion, the Court held that the women challenging KPMG’s pay and promotion policies cannot pursue their claims together.

Currently, Plaintiffs are considering next steps. On December 6, 2018, Plaintiffs filed a motion for reconsideration of the decision based on what appear to be the Court’s misunderstandings about the factual record. On December 7, 2018, the Court ordered additional briefing on the issues raised in Plaintiffs’ motion for reconsideration, which remains under submission.

Importantly, unless the Court grants the reconsideration Motion and/or withdraws the Order, the time limits that the law imposes on pursuing these claims are now running again, meaning that individual members of the potential class hoping to pursue their claims must take individual steps to protect their rights or risk losing them. Please contact Plaintiffs’ Counsel if you have any questions.

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If you have questions about the case against KPMG, you can fill out the contact form below to contact Plaintiffs’ counsel, or call toll-free at 1-800-541-7358 and ask to speak to attorney Anne Shaver. All information will be held strictly confidential. There is no charge or obligation for review of your case.


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