👖 Guess Agrees to $30 Million Settlement Over Sexual Harassment Claims
Co-founder Paul Marciano will step down from the board of the company as it will reform corporate governance policies amidst allegations dating back to 2009.
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Guess? Inc., the prominent fashion company, has reached a $30 million settlement over sexual harassment allegations against co-founder Paul Marciano, as reported by Fortune. The settlement was agreed upon with the models who have accused Marciano of sexual misconduct, among them notable model Kate Upton.
The detailed settlement outlines a $22 million payment from Guess?, while the company is set to pursue an additional $8 million from its insurer. This settlement arises amidst a series of accusations against Marciano, portraying a pervasive culture of harassment within the company.
Kate Upton is one of the models who have come forward, stating that their complaints of sexual harassment were initially ignored. Law360 reported that the board was accused of “continually ignoring an ongoing stream of continued allegations of P. Marciano’s predatory behavior.”
As a part of the settlement's terms, Guess? will be amending its corporate governance policies concerning sexual harassment complaints. Additionally, Maurice Marciano, board member and brother to Paul Marciano, will resign from the board.
Guess? Board Chairman Alex Yemenidjian expressed his gratitude towards Maurice Marciano for his contributions to Guess? and the fashion industry at large, while wishing him well for the future. Yemenidjian acknowledged the significant impact Maurice had during his tenure.
This is not the first time Guess? has found itself entangled in legal disputes. In 2022, the company paid $1 million to settle lawsuits with two models who accused Paul Marciano of abuse. The $22 million from the recent settlement is scheduled to be paid within 10 days following the settlement's approval by Delaware Chancery Judge Lori Will, Fortune added.
The allegations against Paul Marciano are not new, with accusations dating back to 2009 when a model reported sexual assault to the Guess? human resources department. More accusations emerged in 2018 from Upton and other models, marking a long-standing issue within the company.
In 2018, Guess? also settled a class-action lawsuit regarding deceptive advertising practices in California. This recent settlement underscores the company's ongoing legal challenges while indicating a step towards addressing and amending its internal policies on sexual harassment.
The case sheds light on the broader issue of sexual harassment within the fashion industry, further igniting the discourse on corporate responsibility and the necessity for safer work environments.
Share your thoughts and experiences regarding workplace harassment in the comments below, as we continue to explore and discuss measures to foster safer professional spaces.
