Top 40 supplier S&S Activewear (asi/84358) has entered into a settlement regarding a lawsuit that made allegations of sexual harassment/discrimination in the workplace against the company, executives told ASI Media.

Brought by eight former employees, the suit asserted that the plaintiffs were subjected to a hostile work environment in S&S’s Reno, NV, distribution center because rap music with what was described as misogynistic lyrics was allegedly allowed to blare in the facility.

On Nov. 22, S&S and the plaintiffs filed a joint stipulation in the U.S. District Court of Nevada to have the lawsuit dismissed with prejudice, with each party bearing its own attorney fees and costs. “Dismissed with prejudice” means the plaintiffs are prohibited from filing the same claims in the court again. In a Nov. 27 court filing, Chief U.S. District Judge Miranda Du signed an order approving the stipulation and officially dismissing the case.

“The motion to dismiss was filed because the case was settled,” Marc Vitulli, chief marketing officer at S&S Activewear, explained when contacted by ASI Media. “At this point, the matter is resolved.”

S&S did not wish to make further comment. Details on the settlement were not available. Attorneys for the plaintiffs told ASI Media they could not comment on the settlement.

A High-Profile Case With Implications Beyond Promo

The lawsuit drew national media attention and legal analysis/interpretation from attorneys, in part because of its potential implications for employers.

According to the plaintiffs, music of a “sexually graphic, violently misogynistic” nature was allowed to be played in the 700,000-square-foot Reno facility. Lyrics allegedly referred to women as “hoes” and other derogative terms. Songs included Eminem’s “Stan.” The plaintiffs asserted the music was played through commercial-strength speakers that were placed in different locations in the warehouse.

In an earlier ruling, Du initially dismissed the lawsuit, in part on the grounds that the actions were offensive to both sexes and therefore could not constitute sex discrimination, as well as that the music was audible throughout the warehouse, which in Du’s view nullified the discriminatory potential.

However, in June 2023, the Ninth U.S. Circuit Court of Appeals in San Francisco ruled that the suit could be reinstated, saying that “offensiveness to multiple genders is not a certain bar” to a sexual discrimination in the workplace claim, and that harassment, “whether aural or visual, need not be directly targeted at a particular plaintiff to pollute a workplace” and give rise to a potential case of employment discrimination.

A case with some potential implications on the question of whether alleged offensive music played in a production setting can constitute workplace harassment/discriminationhttps://t.co/ni7ohV3SwJ

— Chris Ruvo (@ChrisR_ASI) June 12, 2023

Employment attorneys noted the appeals court ruling has likely relevance for employers.

“In a case of first impression for the Ninth Circuit, the court concluded that music with sexually derogatory and violent content played constantly and publicly throughout the workplace can foster a hostile or abusive environment constituting discrimination because of sex,” wrote attorneys for Fishman Larsen Callister, a legal firm whose key practice areas include employment law.

The firm continued: “Employers should re-examine their training to recognize that a man bombarded with music that degrades women may assert a claim of harassment. The court’s decision can be extended to other protected classes. A person of one ethnicity could assert a claim of unlawful harassment if bombarded with language or conduct that degrades another person’s ethnicity, nationality or race. A worker does not need to be a member of a particular protected class to assert a claim.”

Following the appeals court ruling in June, S&S company leaders emphasized that inclusivity and fostering a workplace environment in which all are comfortable and valued is part of the firm’s core identity.

“We strive to make our workplace both safe and inclusive for all, while ensuring our team members feel respected, fulfilled and motivated,” S&S said in a statement to ASI Media at the time.

Based on 2022 estimated North American promotional product revenue of $2.1 billion, S&S Activewear ranked second on Counselor’s most recent list of the largest suppliers in the industry.