Google has agreed to a $50 million settlement to resolve a class-action lawsuit alleging systemic racial bias against its Black employees. The preliminary agreement, filed late Thursday in federal court in Oakland, California, awaits judicial approval and would cover over 4,000 current and former Google employees in California and New York.

The lawsuit, initiated in March 2022, painted a picture of a "racially biased corporate culture" within the search engine giant. Plaintiffs contended that Google's management engaged in practices that steered Black employees towards lower-level positions, resulted in lower pay compared to their non-Black counterparts, led to unfair downgrading of performance evaluations, and systematically denied them opportunities for career advancement.

The complaint highlighted the underrepresentation of Black individuals within Google's workforce, citing that in 2021, Black employees constituted only 4.4% of the total workforce and a mere 3% of its leadership ranks.

The lead plaintiff in the case, April Curley, who was hired by Google to expand outreach to historically Black colleges, recounted her personal experience. She alleged that Google repeatedly denied her promotions, subjected her to racial stereotypes, including being labeled as an "angry" Black woman, and ultimately terminated her employment after six years, just as she was in the process of preparing a report detailing the company's alleged racial bias.

Furthermore, the lawsuit claimed that Google managers employed coded language to denigrate Black employees, frequently asserting that they were not "Googley" enough or lacked "Googleyness." The plaintiffs argued that these seemingly innocuous phrases served as racial dog whistles, masking discriminatory attitudes.

While agreeing to the significant settlement, Google, a subsidiary of Alphabet based in Mountain View, California, explicitly denied any wrongdoing and affirmed its commitment to full compliance with all applicable laws. In an emailed statement on Friday, Google spokeswoman Courtenay Mencini stated, "We strongly disagree with the allegations that we treated anyone improperly and we remain committed to paying, hiring and leveling all employees consistently."

The lawsuit gained momentum following an investigation by a regulatory body, now known as the California Civil Rights Department, into Google's treatment of Black female employees.

As part of the settlement, lawyers representing the plaintiffs may seek up to $12.5 million from the settlement fund to cover their fees. In a related development on Monday, these lawyers voluntarily dismissed claims that had been brought on behalf of job applicants, citing evidence gathered during the discovery process and Google's "reasoned arguments."

The case, formally titled Curley et al v Google LLC, is being heard in the U.S. District Court for the Northern District of California under case number No. 22-01735. This settlement marks a significant step in addressing allegations of racial bias within one of the world's leading technology companies and underscores the ongoing scrutiny of diversity and inclusion practices in the industry.