Leeds, Morelli & Brown, PC, and Milberg Weiss Bershad Hynes & Lerach LLP Announce Class Action That Accuses Xerox of Systemic, Nationwide Employee Discrimination

Business Wire, May 10, 2001

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--May 10, 2001

The following is an announcement from the law firms of Leeds, Morelli & Brown, PC, and Milberg Weiss Bershad Hynes & Lerach LLP:

In a potentially landmark, civil rights class-action law suit, African-American salespeople in major cities throughout the country, including New York City, Atlanta, Houston and Los Angeles, are accusing the Xerox sales division of discrimination.

The plaintiffs, on behalf of all African-American Xerox sales employees, state that they were discriminated against in numerous different aspects of their jobs, including being assigned to less profitable territories than their white counterparts, being assigned to territories based on their race, not being promoted to more lucrative territories even after proving themselves in undesirable territories, not receiving promotions ahead of white counterparts despite high performance, and being denied commissions they had rightfully earned.

The class-action law suit is being filed by Leeds, Morelli & Brown, PC, and Milberg Weiss Bershad Hynes & Lerach LLP, both based in New York. Milberg Weiss is the country's largest class action litigation firm (www.milberg.com). Leeds, Morelli & Brown (www.lmblaw.com) specializes in employment discrimination. The two firms announced last year that they had formed an affiliation to jointly litigate large-scale employment discrimination cases.

The complaint, filed today in the United States District Court for the Eastern District of New York, gives numerous examples, such as that of Frank Warren, an African-American man who was assigned a territory in the Bronx which required a car. When he notified Xerox that the territory would pose a hardship because he did not have a car, he was told by a vice president-general manager that he was assigned to the Bronx because "blacks and the Bronx go hand in hand."

After her initial training, plaintiff Alicia Dean-Hall, a Westchester (New York) County resident, was assigned to a sales team comprised of six African-Americans and two Caucasians. The team was known among the sales force as the "soul train" because of its ethnic make up. Four years after Ms. Dean-Hall had become a sales representative, Xerox formed a new sales territory, consisting of the smallest, least profitable accounts. She was pulled from her assignment and placed in this new territory.

Several months later, she interviewed for a position under a white male sales manager. She was told that if she accepted, the established accounts in that territory would remain. However, the sales manager subsequently removed the most profitable accounts. When Ms. Dean-Hall discovered this, she declined the offer. Soon thereafter, she was promoted to high volume marketing executive ("HVME") -- only after threatening to resign. She proved her abilities by performing at 235% of her goal. Five months later, Dean-Hall was assigned as acting manager of major accounts. After only three months, she was replaced with a white male.

Later in the year, Dean-Hall was notified that her sales team was dissolving, and she promptly applied for another HVME position, one that she was assured by several people would be reserved for her. Ultimately, the position was given to a white male who was less qualified, with less experience than the plaintiff. The explanation offered was that she did not get the position because she "was not the right fit."

Generally, the suit shows that many Caucasian account managers whom Xerox assigned more profitable accounts, were actually given lower budgets than minorities in less lucrative territories. It further shows that once these African-American salespeople met or exceeded their goals despite the challenges they faced, they were moved to low-performing, less profitable territories, only to have to begin to build these accounts up, and not allowed to reap the rewards of their hard work in their original territories. It should be noted that once the plaintiffs improved the business in a given territory, a white salesperson would be moved in to enjoy the benefits.

The six plaintiffs have all enjoyed awards, honors and trips that recognized their performance, yet they were removed from territories they themselves made profitable and, as a result, earned half of what their white counterparts were earning.

"This law suit will send a powerful message to corporations nationwide," noted co-counsel Lenard Leeds of Leeds, Morelli & Brown. "No corporation, no matter how powerful and large, has the right to disrespect, abuse or discriminate against any individual."