ST. LOUIS A federal judge threw out an $8 million settlement between the Adam s Mark chain and five black guests who said they were discriminated against last year.
U.S. District Judge Anne Conway ruled that recent decisions by the U.S. Supreme Court and a federal appeals court regarding class-action lawsuits invalidated the agreement.
Conways ruling does not affect a separate, non-monetary settlement with the Justice Department in which Adams Mark agreed to take steps to prevent discrimination at its 21 hotels. That settlement is likely to be approved soon, Conway said.
The five guests sued the Adams Mark chain last year, claiming the company s Daytona Beach hotel treated them differently than it treated white guests. The original complaint spurred a separate suit by the Justice Department. (10/17/00)