Astra USA Wins Sex Allegations Appeal

15 September 1996

A US appeals court has dismissed part of an injunction against Astra USA, the US arm of the Swedish drug firm Astra, prohibiting the company from enforcing settlement agreements with employees who alleged they were victims of sexual harassment (Marketletters passim).

Astra had entered into cash settlement agreements, ranging from $20,000 to $100,000, with at least 11 employees who claimed they were victims of or witnessed sexual harassment, according to court documents. The agreements prohibited the employees from filing charges against Astra with the Equal Employment Opportunity Commission, or helping other employees who wish to file charges.

The US Court of Appeals, however, said that the settlement does not prevent employees from cooperating with the EEOC investigation, but those who entered into the deal could not file charges, according to a Reuters report.

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