Last week, a federal jury in Manhattan assessed $250 million in punitive damages, the largest award of its kind in United States history, against the pharmaceutical giant, Novartis, for discriminating against its female employees with respect to pay, promotions and pregnancy.  The award will go to all 5,600 current and former female Novartis employees who are plaintiffs in the class action, first filed in 2004.

Previously, the jury had determined that Novartis’ United States division, the Novartis Pharmaceuticals Corporation, had engaged in a pattern of discrimination against women from 2002 through 2007.

The jury had also awarded $3.3 million in compensatory damages in favor of 12 female employees, who testified that management routinely mistreated female employees by paying them less and passing them over for promotions, among other misconduct. The award to the 12 opens the door for the 5,588 other class members to also apply for compensatory damages. The damages will likely be determined on an individual basis by a court-appointed special master. The federal district court judge in the case will also determine a lump sum for back pay, lost benefits and adjusted wages that will be distributed to the plaintiffs, who are seeking $37 million to cover back pay.

"The 5,600 women in the class endured egregious gender discrimination for years," one of the plaintiff’s lawyers in the case said.  "All the while, the company did nothing, even after being warned time after time about the deep-seated culture of discrimination at the company."

Novartis indicated it would appeal the verdict. 

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