Davos Organizer Sued for Race, Pregnancy Discrimination

(Bloomberg) -- The World Economic Forum and its founder Klaus Schwab were sued for racial and pregnancy discrimination by a Black employee based in New York.

The Forum, best known for its annual Davos gathering of political and business leaders, told policy expert Topaz Smith her job was being eliminated immediately when she returned from maternity leave. It replaced her with a non-pregnant White woman earlier this year, according to the lawsuit filed Monday in federal court in Manhattan.

The legal action follows a June report in The Wall Street Journal that detailed a workplace culture of hostility toward women and Black people, and included Smith’s allegations. 

“While it’s disappointing to see such false claims being made, now that these matters are in court, the frivolity and falsity of these claims will become evident,” Yann Zopf, a spokesperson for WEF, said in a statement.

The lawsuit alleges that the Forum “discriminated systematically” against its Black employees and tended to “keep Black employees away from Davos.” Smith attended public sessions she organized for the conference in Switzerland via video after the WEF declined to pay for her travel costs, according to the suit.

Smith, who had begun transitioning to a more client-facing role before her maternity leave, also alleges that new role never panned out. When she came back, she was instead offered a temporary, six-month assignment, which she is currently completing.

The position was just a maneuver “to try to convince Smith to move on without holding the Forum accountable for its obvious discrimination,” according to the suit.

The WEF announced in May that Schwab, 86, is stepping down from active leadership of the organization and transitioning to a non-executive role by January.

The case is Smith v. World Economic Forum LLC, 24-05150, US District Court, Southern District of New York (Manhattan).

(Updates with WEF spokesperson’s comment.)

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