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FedEx Settles Class Action – California Federal Court Gives Final Approval To Settlement Of Class Action Alleging Race Discrimination

FedEx reports that on August 14, 2007, Judge Susan Illston of the U.S. District Court for the Northern District of California gave final approval to a class action settlement in Satchell v. FedEx Express, a class action that alleged racial discrimination by the company. In part, the terms of the class action settlement require FedEx discontinue its use of a Basic Skills Test (BST), which the company believed necessary to “ensure that customer-facing employees possess the basic skills required for successful job performance”; the class action alleged that the BST acted as a barrier to minority advancement in the company. FedEx further reports that the class action settlement requires payment of roughly $55 million to 23,000 class members, from which will be deducted $15 million in attorney fees and costs.

The company’s summary may be found at