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EEOC Falsely Accuses Employer and Pays for It

2010-03-30

 

Turnaround is Fair Play - EEOC Falsely Accused Employer in Class Sexual Harassment Suit and Pays for Its Mistake

The tables turned on EEOC when a trial judge struck down a pattern or practice sexual harassment claim on behalf of 68 women.  (EEOC v. CRST Van Expedited, Inc. Case No. 07-CV-0095 (U.S. DC: ND Iowa.))  The Northern District of Iowa judge awarded over $4.5 million in attorney's fees and expenses to the defendant in a dismissed lawsuit against the trucking firm, CRST Van Expedited.

EEOC filed a series of claims against CRST alleging sexual harassment of female employees.  EEOC investigated the claim of one woman, and filed the lawsuit before it investigated the claims of 67 other women.  The case was dismissed by the Court finding that EEOC failed to investigate and consolidate individual claims prior to bringing the lawsuit.  The judge felt that EEOC tried the "sue first, ask questions later" approach to resolving the claims.  The Court found that EEOC actions were unreasonable and imposed an unnecessary burden on the company and the court.