Texaco settles race bias suit for $176 million
Los Angeles Times
November 16, 1996

NEW YORK -- In the glare of scandal, Texaco Inc. on Friday signed what may be the largest settlement of a racial discrimination lawsuit, agreeing to pay an immediate $115 million in damages plus pay raises of at least 10% to about 1,400 black employees.

An unusual aspect of the settlement, valued by plaintiffs' lawyers at $ 176 million in all, calls for Texaco to form a seven-member "equality and tolerance task force" that will give the plaintiffs a say in hiring and promotion policy at the giant oil company.

"The era of the 'good ol' boy network' at Texaco is coming to an end," plaintiffs' lawyer Cyrus Mehri said, adding: "It's going to be a new Texaco."

After dragging on for 2 1/2 years, the case was settled in 10 days of urgent negotiations that began Nov. 12, the day after the disclosure of secret recordings of senior Texaco executives denigrating black workers and plotting to destroy incriminating evidence in the lawsuit.