Goldman Sachs has settled a gender discrimination lawsuit for $317 million. 

Goldman Sachs agreed to the substantial sum to resolve a long-standing class-action lawsuit that accused the renowned Wall Street firm of systematically underpaying women. 

The settlement was reached between the bank and lawyers representing approximately 2,800 women who alleged gender-based discrimination in terms of pay and promotions. 

It is anticipated that roughly one-third of the settlement will be allocated for attorney fees.

The trial, initially slated for next month in New York, would have offered a rare public platform for the discussion of inequality within the financial industry, where all but one of the six largest US banks have been led exclusively by men. 

By striking a deal just before the trial, Goldman Sachs avoided potential adverse publicity.  Previously, Goldman Sachs had asserted its readiness to vigorously defend itself against what it considered unfounded allegations.

While the trial would have primarily focused on pay and promotion statistics, and the judge had ruled that the allegation of a boys' club atmosphere did not meet the criteria for class treatment, it was expected to delve deeper into the inner workings of Goldman Sachs, including testimonies from executives.

The settlement amount surpasses the $100 million paid by Smith Barney years ago to resolve the Boom-Boom Room suit, which had accused the firm of harassment and discrimination.

The initial lawsuit against Goldman Sachs was initiated by Cristina Chen-Oster, a Massachusetts Institute of Technology graduate who joined the company in 1997 and worked in convertible bonds sales. 

Chen-Oster filed a discrimination complaint with the US Equal Employment Opportunity Commission in July 2005, subsequently suing the bank in 2010. 

Goldman Sachs employed various strategies, successfully in some instances, to compel certain women involved in the case to go through arbitration, a more secretive process.

Mandatory arbitration agreements are not the only methods employed by corporations.

Nondisclosure agreements and settlements have long been utilised on Wall Street and beyond to prevent claims of misconduct and unfair treatment from gaining public attention.

For years, Goldman Sachs and its counterparts have committed to diversifying their workforce, acknowledging the need for improvement. Although women constituted 29 percent of Goldman Sachs' partner class last year, it marked the firm's most inclusive group of promotions to date.

While the plaintiffs also sought to raise concerns about a boys' club atmosphere, the court ruled that such claims necessitated individual investigations into specific incidents and did not meet the criteria for class treatment.