Accenture to Pay $25M to Settle DOJ Discrimination Claims
ACN sits 65% above its 52-week low of $118.15.
Summary
Accenture agreed to pay $25 million to resolve DOJ allegations that it used race and sex in hiring and promotion decisions to meet internal workforce composition goals. The DOJ claims business leaders received monthly color-coded reports tracking representation by race and sex, which drove hiring changes, and that some training and mentoring programs were restricted by race or sex. This is a material legal settlement for a company of Accenture's size, though the amount is modest relative to its market cap. The news adds a compliance risk narrative to the stock, which has already been under pressure from weak revenue guidance. No specific upcoming event is tied to this settlement, but it may invite further scrutiny of Accenture's diversity practices.
At the time of this announcement, ACN was trading at $194.55 on NYSE in the Trade & Services sector, with a market capitalization of approximately $119.3B. The 52-week trading range was $118.15 to $291.09. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.