Omnicom, Code Settle Sex Harassment Suit, Finalization In Progress

Omnicom Group and its marketing technology agency Code Worldwide are close to finalizing the settlement of a sex harassment suit that was filed against them last year by former Code managing director Anna Moca.

On Wednesday, U.S. District Judge Paul Engelmayer issued an order of discontinuance of the case after being advised by the parties that they have reached a “settlement in principle.”

Moca left the agency last October, alleging that staffers at the New York office had created such a hostile work environment that it was no longer tenable to stay. She filed suit with the U.S. District Court for the Southern District of New York in December.

Moca had sought unspecified damages for gender discrimination, sexual harassment and retaliatory conduct which she said violated Title VII of the U.S. Civil Rights Act of 1964 and the human rights laws of both New York City and State.

Omnicom and Code countered that Moca’s complaint “did not rise to the level of an actionable hostile work environment claim." The holding company also asserted that Moca’s retaliation claim was invalid because she “did not suffer an adverse employment action.”

Assuming the parties can finalize their settlement, the case will be the latest in a series of high-profile harassment and diversity-related cases at holding companies and their agencies to be disposed of this year. In January, Ogilvy & Mather and Neo@Ogilvy settled a suit brought by Neo planner Audrey Gladitsch who charged retaliation on the part of the agencies after she raised an alleged fraudulent billings issue.

In February, Publicis Groupe’s Starcom MediaVest Group settled a racial discrimination suit brought against it last year by Kristi Goldner, a former media supervisor on the agency’s General Motors account.

And just last week, a New York trial jury dismissed a complaint by Interpublic Group legal department employee Joy Noel that she was illegally passed over for promotion at the company in 2011 due to her race. But whether the verdict in that case stands remains to be seen. Noel’s attorney commented after the decision that she would probably file an appeal.

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