On Monday, a federal jury ordered the U.S. unit of Swiss drugmaker Novartis Pharmaceuticals to pay a total of $3.37 million to 12 female former sales representatives for sexual discrimination in pay and promotions, the Wall Street Journal reports.

The jury also determined that Novartis should pay punitive damages and will set a value for the award on Tuesday (Bray, Wall Street Journal, 5/18). In coming months, more than 5,600 female Novartis employees could be eligible for individual damages, which could total more than $200 million, according to the New York Times.

The jury found that Novartis engaged in a pattern of discrimination against female employees from 2002 to 2007. Women who testified in the case said they were subject to hostile comments, particularly with regard to pregnancy, and unfairly passed over for promotions. They described the company's atmosphere as sexist and controlled by male district managers. For example, one of the plaintiffs, who was awarded $476,000 in damages, said a male manager forced her out of her job after she became pregnant (Wilson, New York Times, 5/17). Another plaintiff testified that a male manager told her to have an abortion (Bloomberg/Boston Globe, 5/18).

Kate Kimpel, a lawyer for the plaintiffs, said female sales representatives were expected to be amenable to sexual advances from physicians they met for sales calls. She said Novartis ignored complaints from female employees about inappropriate doctors and "paid those same women less, wouldn't promote them into management and punished them if they got pregnant." According to testimony at the trial, one male district manager showed female employees pornographic images and invited them to sit on his lap (Neumeister, AP/Washington Post, 5/17).

In a statement, Novartis criticized the ruling and said it is considering an appeal. "Novartis Pharmaceuticals Corporation is disappointed in the jury's verdict, as we believe the plaintiffs' claims were unfounded," the statement said. The company also noted that it has received "public honor and recognition" for "policies and programs we have in place to support the advancement of women in the sales force" (Wall Street Journal, 5/18).

Working Mother magazine named Novartis one of its top 100 companies for past the 10 years, according to the Times. Kimpel said the company's lawyers cited the magazine award in their opening arguments but did not mention it again during the trial (New York Times, 5/17).

Reprinted with kind permission from nationalpartnership. You can view the entire Daily Women's Health Policy Report, search the archives, or sign up for email delivery here. The Daily Women's Health Policy Report is a free service of the National Partnership for Women & Families, published by The Advisory Board Company.

© 2010 The Advisory Board Company. All rights reserved.

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