Case: Kassman v. KPMG LLP

1:11-cv-03743 | U.S. District Court for the Southern District of New York

Filed Date: June 2, 2011

Closed Date: June 22, 2022

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Case Summary

On June 2, 2011, a female former manager filed this putative class action lawsuit in the U.S. District Court for the Southern District of New York against KPMG LLP, a large accounting and professional services firm. The plaintiff asserted claims of gender discrimination under the Equal Pay Act, Title VII of the Civil Rights Act, and state and local laws. Represented by private counsel, she sought permanent injunctive relief and damages for gender-based employment discrimination. The case was as…

In September 2011 and in May 2016, the plaintiff joined claims with several other former and current female employees at KPMG. The plaintiffs ultimately requested class certification for: “all female exempt Client Service and Support Professionals, including but not limited to Associates, Senior Associates, Managers, Senior Managers/Directors and Managing Directors…who are, or have been, employed by KPMG nationwide during the applicable liability period until the date of judgment.” The plaintiffs also brought analogous claims under New York City and New York state laws and sought to certify a New York subclass.

The plaintiffs claimed that KPMG had engaged in a pattern and practice of gender discrimination stemming from policies that lacked transparency and fairness. In total, the complaint alleged nineteen counts of employment discrimination on behalf of different combinations of named and putative class plaintiffs.

Specifically, the plaintiffs alleged the following on behalf of the nationwide class:

pay discrimination, promotion discrimination, and pregnancy and caregiving discrimination in violation of Title VII;
denial of equal pay for equal work under the Equal Pay Act.

They also alleged the following on behalf of the New York subclass:

pay discrimination, promotion discrimination, and pregnancy and caregiving discrimination in violation of the New York State Human Rights Law and the New York City Human Rights Law;
denial of equal pay for equal work under the New York State Equal Pay Acts.

Finally, the named plaintiffs pursued individual claims for retaliation in violation of Title VII and New York City and New York state laws; pregnancy discrimination in violation of the Family and Medical Leave Act; and race discrimination in violation of 42 U.S.C. §1981.

On February 7, 2013, the court granted the KPMG’s motion to strike class claims under New York State and New York City laws that were brought on behalf of plaintiffs who neither worked nor lived in the relevant jurisdictions. The court also dismissed some individual counts of discrimination, but denied KPMG’s motion with respect to all other counts. 925 F. Supp. 2d 453.

The case was reassigned to Judge Lorna G. Schofield in March 2013. On July 8, 2014, the court granted the plaintiffs’ motion for conditional certification of the class. 2014 WL 3298884. On September 4, 2015, the court granted the plaintiffs’ motion for equitable tolling of the statute of limitations. (Under the principle of equitable tolling, the court has discretion to suspend the statute of limitations period in certain situations to prevent an inequitable outcome.) The court adjusted the limitations period to cover all claims from March 2009–March 2012, and to cover all class-action plaintiffs who had opted in by April 2015. 2015 WL 5178400. The Equal Pay Act claims consisted of 1,112 opt-in plaintiffs.

However, on November 30, 2018, the court held that the plaintiffs could not meet the requirements for class certification in light of the Supreme Court’s decision in Wal-Mart v. Dukes, which made it extremely difficult for a gender discrimination suit to proceed as a class action where the discriminatory treatment was the product of local supervisors exercising their discretion in awarding pay and promotions. The district court found that the plaintiffs here could not show a common mode of decision-making by supervisors that would warrant class certification with respect to the Title VII claims and that the plaintiffs had not shown that members of the opt-in class for the Equal Pay Act claims worked for a “single establishment” and were all “similarly situated.” The Court also denied class certification for the New York subclass. 2018 WL 6264853.

The plaintiffs appealed the district court’s decision, but on March 19, 2019, the Second Circuit Court of Appeals (Judges Rosemary Pooler, Denny Chin, and Richard Eaton) denied the appeal, holding that immediate appeal was not warranted. The Second Circuit also granted a motion allowing non-parties to file an amicus brief.

Discovery continued in the district court. On September 27, 2019, KPMG filed a motion to dismiss certain Equal Pay Act claims. This motion was partially granted as to certain plaintiffs but not others on July 15, 2020. 2020 WL 4003367.

On September 30, 2020, the parties filed a letter stating that they had agreed to pursue mediation in an attempt to resolve all claims, and on October 21, 2020, the case was stayed pending the outcome of mediation. On March 30, 2021, after formalizing the terms of the settlement agreement, Plaintiffs filed a motion for approval of the settlement agreement and Defendant filed a letter in support of the motion.

Defendant agreed to pay $10,000,000 for the settlement of all claims, including those for attorneys' fees and costs. In exchange, the former opt-in plaintiffs (FOIPs) released their EPA claims and any additional claims arising out of or related to gender, sex and/or pregnancy discrimination against Defendant and the Named Plaintiffs agreed to sign a global release of all claims against Defendant. Plaintiffs' counsel received thirty-five percent of the settlement fund, for a total of $3,500,000.

	Document
1:11-cv-03743	Docket [PACER]	Aug. 4, 2020	Aug. 4, 2020 Docket
1 1:11-cv-03743	Complaint	June 2, 2011	June 2, 2011 Complaint 2011 WL 2150674
35 1:11-cv-03743	Third Amended Class Action Complaint	Jan. 6, 2012	Jan. 6, 2012 Complaint
69 1:11-cv-03743	Opinion and Order (Granting in part and Denying in part 36 Motion to Dismiss)	Feb. 7, 2013	Feb. 7, 2013 Order/Opinion 925 F.Supp.2d 453
87 1:11-cv-03743	Plaintiffs' Motion for Equitable Tolling of the Statute of Limitations for Absent Collective Action Members' Claims under the Equal Pay Act	May 13, 2013	May 13, 2013 Pleading / Motion / Brief
99 1:11-cv-03743	Order (Directing Clerk of Court to Close Motion No. 87)	Aug. 20, 2013	Aug. 20, 2013 Order/Opinion
175 1:11-cv-03743	Opinion and Order	July 8, 2014	July 8, 2014 Order/Opinion 2014 WL 3298884
413 1:11-cv-03743	Opinion and Order	Sept. 4, 2015	Sept. 4, 2015 Order/Opinion 2015 WL 5178400
548 1:11-cv-03743	Fourth Amended Complaint	May 13, 2016	May 13, 2016 Complaint
831 1:11-cv-03743	Opinion and Order	Nov. 30, 2018	Nov. 30, 2018 Order/Opinion 2018 WL 6264835

ECF Number	Description	Date	Link Date / Link
	Case Designated ECF. (ama)	June 2, 2011	June 2, 2011 PACER
	Magistrate Judge Frank Maas is so designated. (ama)	June 2, 2011	June 2, 2011 PACER
	SUMMONS ISSUED as to KPMG LLP. (ama)	June 2, 2011	June 2, 2011 PACER
1	COMPLAINT against KPMG LLP. (Filing Fee $ 350.00, Receipt Number 1008108)Document filed by Donna Kassman.(ama) (Entered: 06/03/2011)	June 2, 2011	June 2, 2011 RECAP
3	AMENDED COMPLAINT amending 1 Complaint against KPMG LLP with JURY DEMAND.Document filed by Donna Kassman. Related document: 1 Complaint filed by Donna Kassman.(tro) (Entered: 06/08/2011)	June 6, 2011	June 6, 2011 RECAP
2	CONSENT TO JOIN CLASS. Document filed by Donna Kassman. (Attachments: # 1 Exhibit A)(Nurhussein, Siham) (Entered: 06/07/2011) 1 Exhibit A View on PACER	June 7, 2011	June 7, 2011 PACER
4	NOTICE of Filing of Consent to Join Forms. Document filed by Donna Kassman. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Nurhussein, Siham) (Entered: 07/07/2011) 1 Exhibit A View on PACER 2 Exhibit B View on PACER	July 7, 2011	July 7, 2011 PACER
5	FILING ERROR - DEFICIENT DOCKET ENTRY - CONSENT TO JOIN CLASS. Document filed by Donna Kassman. (Attachments: # 1 Exhibit A)(Nurhussein, Siham) Modified on 9/8/2011 (ka). (Entered: 09/07/2011) 1 Exhibit A View on PACER	Sept. 7, 2011	Sept. 7, 2011 PACER
	*NOTE TO ATTORNEY TO RE-FILE DOCUMENT - DEFICIENT DOCKET ENTRY ERROR. Note to Attorney Siham Nurhussein to RE-FILE Document 5 Consent to Join Class. ERROR(S): Consenting party pltff Linda O'Donnell missing from docket.*NOTE: When the computer prompts to ADD PARTY Joining Class party plaintiff, if not already added you must add Linda O'Donnell and select as the filer. Modified on 9/8/2011 (ka).	Sept. 8, 2011	Sept. 8, 2011 PACER
10	SECOND AMENDED COMPLAINT amending 3 Amended Complaint against KPMG LLP with JURY DEMAND.Document filed by Donna Kassman, Jeanette Potter, Sparkle Patterson, Ashwini Vasudeva, Linda O'Donnell. Related document: 3 Amended Complaint filed by Donna Kassman. (Received in the night deposit box on 9/29/11 at 7:19pm)(mro) (Additional attachment(s) added on 10/6/2011: # 1 Sec. Amended Complaint Pages 51-95) (ama). (Entered: 10/04/2011) 1 Sec. Amended Complaint Pages 51-95 View on RECAP	Sept. 29, 2011	Sept. 29, 2011 RECAP
8	MEMORANDUM OF LAW in Support re: 7 MOTION for Leave to File Second Amended Complaint.. Document filed by Donna Kassman. (Nurhussein, Siham) (Entered: 09/29/2011)	Sept. 29, 2011	Sept. 29, 2011 RECAP
7	MOTION for Leave to File Second Amended Complaint. Document filed by Donna Kassman. (Attachments: # 1 Exhibit A)(Nurhussein, Siham) (Entered: 09/29/2011) 1 Exhibit A View on PACER	Sept. 29, 2011	Sept. 29, 2011 PACER
6	WAIVER OF SERVICE RETURNED EXECUTED. KPMG LLP waiver sent on 9/20/2011, answer due 11/21/2011. Document filed by Donna Kassman. (Nurhussein, Siham) (Entered: 09/29/2011)	Sept. 29, 2011	Sept. 29, 2011 PACER
9	FILING ERROR - WRONG DOCUMENT TYPE SELECTED FROM MENU - CONSENT TO BECOME PARTY PLAINTIFF UNDER THE F.L.S.A.. Document filed by Donna Kassman. (Attachments: # 1 Exhibit A)(Nurhussein, Siham) Modified on 10/3/2011 (ka). (Entered: 09/30/2011) 1 Exhibit A View on PACER	Sept. 30, 2011	Sept. 30, 2011 PACER
	*NOTE TO ATTORNEY TO RE-FILE DOCUMENT - EVENT TYPE ERROR. Note to Attorney Siham Nurhussein to RE-FILE Document 9 Consent to Become Party Plaintiff. Use the event type Consent to Join Class found under the event list Other Documents.*NOTE: When the computer prompts to "ADD PARTY Joining Class, if not already added" you MUST add new filer Linda O'Donnell with party role of plaintiff". Your entry should read as follows: "CONSENT TO JOIN CLASS. Document filed by Linda O'Donnell". (ka)	Oct. 3, 2011	Oct. 3, 2011 PACER
12	MOTION for David W. Sanford to Appear Pro Hac Vice. Document filed by Donna Kassman, Linda O'Donnell, Sparkle Patterson, Jeanette Potter, Ashwini Vasudeva.(pgu) (Entered: 10/05/2011)	Oct. 4, 2011	Oct. 4, 2011 PACER
11	MOTION for Katherine M. Kimpel to Appear Pro Hac Vice. Document filed by Donna Kassman, Linda O'Donnell, Sparkle Patterson, Jeanette Potter, Ashwini Vasudeva.(pgu) (Entered: 10/05/2011)	Oct. 4, 2011	Oct. 4, 2011 PACER
	***NOTE TO ATTORNEY TO E-MAIL PDF. Note to Attorney Siham Nurhussein for noncompliance with Section 14.3 of the S.D.N.Y. Electronic Case Filing Rules & Instructions. E-MAIL the PDF for Document 10 Amended Complaint, to: caseopenings@nysd.uscourts.gov. (mro)	Oct. 4, 2011	Oct. 4, 2011 PACER
13	CONSENT TO JOIN CLASS. Document filed by Linda O'Donnell. (Attachments: # 1 Exhibit A)(Nurhussein, Siham) (Entered: 10/05/2011) 1 Exhibit A View on PACER	Oct. 5, 2011	Oct. 5, 2011 PACER
	CASHIERS OFFICE REMARK on 12 Motion to Appear Pro Hac Vice, 11 Motion to Appear Pro Hac Vice in the amount of $400.00, paid on 10/04/2011, Receipt Number 1018128,1018129. (jd)	Oct. 6, 2011	Oct. 6, 2011 PACER
17	FILING ERROR - DEFICIENT DOCKET ERROR - MEMORANDUM OF LAW in Opposition re: 7 MOTION for Leave to File Second Amended Complaint.. Document filed by KPMG LLP. (Attachments: # 1 Affidavit of Cheryl M. Stanton, # 2 Exhibit A, # 3 Exhibit B)(Stanton, Cheryl) Modified on 10/18/2011 (kco). (Entered: 10/17/2011) 1 Affidavit of Cheryl M. Stanton View on PACER 2 Exhibit A View on PACER 3 Exhibit B View on PACER	Oct. 17, 2011	Oct. 17, 2011 PACER
16	FILING ERROR - DEFICIENT DOCKET ERROR - RULE 7.1 CORPORATE DISCLOSURE STATEMENT. No Corporate Parent. Document filed by KPMG LLP.(Stanton, Cheryl) Modified on 10/18/2011 (kco). (Entered: 10/17/2011)	Oct. 17, 2011	Oct. 17, 2011 PACER
15	ORDER FOR ADMISSION PRO HAC VICE granting 11 Motion for Katherine Kimpel to Appear Pro Hac Vice. (Signed by Judge Richard J. Holwell on 10/17/2011) (cd) (Entered: 10/17/2011)	Oct. 17, 2011	Oct. 17, 2011 PACER
14	ORDER FOR ADMISSION PRO HAC VICE granting 12 Motion for David Sanford to Appear Pro Hac Vice. (Signed by Judge Richard J. Holwell on 10/17/2011) (cd) (Entered: 10/17/2011)	Oct. 17, 2011	Oct. 17, 2011 PACER
19	MEMORANDUM OF LAW in Opposition re: 7 MOTION for Leave to File Second Amended Complaint.. Document filed by KPMG LLP. (Attachments: # 1 Affidavit of Cheryl M. Stanton, # 2 Exhibit A, # 3 Exhibit B)(Stanton, Cheryl) (Entered: 10/18/2011) 1 Affidavit of Cheryl M. Stanton View on PACER 2 Exhibit A View on PACER 3 Exhibit B View on PACER	Oct. 18, 2011	Oct. 18, 2011 PACER
18	RULE 7.1 CORPORATE DISCLOSURE STATEMENT. No Corporate Parent. Document filed by KPMG LLP.(Stanton, Cheryl) (Entered: 10/18/2011)	Oct. 18, 2011	Oct. 18, 2011 PACER
21	NOTICE OF APPEARANCE by Diane Marjorie Saunders on behalf of KPMG LLP (Saunders, Diane) (Entered: 10/19/2011)	Oct. 19, 2011	Oct. 19, 2011 PACER
20	NOTICE OF APPEARANCE by Cheryl Marie Stanton on behalf of KPMG LLP (Stanton, Cheryl) (Entered: 10/19/2011)	Oct. 19, 2011	Oct. 19, 2011 PACER
22	CONSENT MOTION for Extension of Time to File Response/Reply as to 19 Memorandum of Law in Opposition to Motion for Leave to File Second Amended Complaint. Document filed by Donna Kassman, Linda O'Donnell, Sparkle Patterson, Jeanette Potter, Ashwini Vasudeva.(Nurhussein, Siham) (Entered: 10/20/2011)	Oct. 20, 2011	Oct. 20, 2011 PACER
24	MOTION for Peter O. Hughes to Appear Pro Hac Vice. Document filed by KPMG LLP.(bcu) (pgu). (Entered: 10/21/2011)	Oct. 21, 2011	Oct. 21, 2011 PACER
23	MOTION for Steven W. Moore to Appear Pro Hac Vice. Document filed by KPMG LLP.(bcu) (pgu). (Entered: 10/21/2011)	Oct. 21, 2011	Oct. 21, 2011 PACER
	CASHIERS OFFICE REMARK on 24 Motion to Appear Pro Hac Vice, 23 Motion to Appear Pro Hac Vice in the amount of $400.00, paid on 10/21/2011, Receipt Number 1019792,1019793. (jd)	Oct. 25, 2011	Oct. 25, 2011 PACER
25	ORDER granting 22 Motion for Extension of Time to File Response/Reply re 7 MOTION for Leave to File Second Amended Complaint. Replies due by 11/3/2011. It is hereby Ordered that the motion is GRANTED, and further Ordered, that the plaintiff shall have until 11/3/11 to file a reply in support of motion for leave second amended complaint, the length of which may total 15 pages. (Signed by Judge Richard J. Holwell on 10/28/2011) (jfe) (Entered: 10/31/2011)	Oct. 31, 2011	Oct. 31, 2011 PACER
28	REPLY MEMORANDUM OF LAW in Support re: 7 MOTION for Leave to File Second Amended Complaint.. Document filed by Donna Kassman, Linda O'Donnell, Sparkle Patterson, Jeanette Potter, Ashwini Vasudeva. (Attachments: # 1 Exhibit A)(Nurhussein, Siham) (Entered: 11/03/2011) 1 Exhibit A View on PACER	Nov. 3, 2011	Nov. 3, 2011 PACER
27	ORDER FOR ADMISSION PRO HAC VICE granting 24 Motion for Peter O. Hughes to Appear Pro Hac Vice. (Signed by Judge Richard J. Holwell on 11/2/2011) (rjm) (Entered: 11/03/2011)	Nov. 3, 2011	Nov. 3, 2011 PACER
26	ORDER FOR ADMISSION PRO HAC VICE: granting 23 Motion for Steven W. Moore to Appear Pro Hac Vice for all purposes as counsel for Defendant KMPG LLP in the above-captioned case in the United States District Court for the Southern District of New York. Additional relief as set forth in this Order. (Signed by Judge Richard J. Holwell on 11/2/2011) (pl) (Entered: 11/03/2011)	Nov. 3, 2011	Nov. 3, 2011 PACER
29	ENDORSED LETTER: addressed to Judge Richard J. Holwell from Cheryl M. Stanton dated 11/21/2011 re: Pursuant to the Court's Individual Motion Practices, Defendant KPMG LLP respectfully request a pre-motion conference concerning its anticipated motion under Rule 12(b)(6) and Rule 23(d)(1)(D) to dismiss or strike class claims, and to dismiss certain individual claims in Plaintiff's First Amended Complaint. ENDORSEMENT: A pre-motion conference will be held on Thursday, December 8, 2011 at 2:30 p.m. Plaintiff shall respond to defendant's 11/21/2012 letter by December 2, 2011 So Ordered. (Signed by Judge Richard J. Holwell on 11/22/11) (js) (Entered: 11/28/2011)	Nov. 28, 2011	Nov. 28, 2011 PACER
30	MOTION for Katherine E. Lamm to Appear Pro Hac Vice. Document filed by Donna Kassman, Linda O'Donnell, Sparkle Patterson, Jeanette Potter, Ashwini Vasudeva.(bwa) (Entered: 12/08/2011)	Dec. 6, 2011	Dec. 6, 2011 PACER
	Minute Entry for proceedings held before Judge Richard J. Holwell: Interim Pretrial Conference held on 12/8/2011. Plaintiff shall file further amended complaint by 12/23/11; Defendant's motion to dismiss by 1/17/12; Plaintiff's opposition filed by 2/17/12; Defendant's reply by 3/2/12. (jfe)	Dec. 8, 2011	Dec. 8, 2011 PACER
	CASHIERS OFFICE REMARK on 30 Motion to Appear Pro Hac Vice in the amount of $200.00, paid on 12/06/2011, Receipt Number 1023624. (jd)	Dec. 13, 2011	Dec. 13, 2011 PACER

Case: Kassman v. KPMG LLP

1:11-cv-03743 | U.S. District Court for the Southern District of New York

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