Former Chief Internal Auditor Exposes Systemic Race and National Origin Discrimination at Sojitz Corporation of America

NEW YORK, Nov. 2 /PRNewswire/ -- Yesterday, Arnold Schanfield the Former Chief Internal Auditor of Sojitz Corporation of America ("Sojitz" or "the Company") filed a class action federal lawsuit in the Southern District of New York accusing the Company of systematic discrimination against non- Japanese/non-Asian employees. Mr. Schanfield alleges that not only was he a victim of these discriminatory policies, but Sojitz also unlawfully terminated his employment when he opposed and sought an end to the blatant, discriminatory favoritism toward the Company's Japanese employees.

As his class action complaint explains, Sojitz follows policies and practices that treat their non-Japanese/non-Asian counterparts as second-class citizens. For example, Sojitz specifically reserves its top management positions for the male Japanese executives transferred from Tokyo, without consideration of skill or experience. As a rule, Sojitz refuses to even consider non-Japanese/non-Asian candidates for these roles, no matter how well-qualified. Consequently, even the most experienced and successful American executives at Sojitz are barred from moving above certain level due to their race and/or national origin. The make up of Sojitz's management confirms this policy, it is overwhelmingly dominated by male Japanese executives to the detriment of any other group. Sojitz exacerbates this discriminatory outcome by granting its Japanese staff far higher compensation and subjecting them to less stringent disciplinary standards than their non- Japanese/non-Asian colleagues.

Mr. Schanfield's class action complaint explains that he was subjected to these blatantly discriminatory policies. Although he was one of the rare non- Japanese/non-Asian managers and the purported "head" of the Company's important internal audit function, he too was barred from the inner management realm reserved for the Japanese. Mr. Schanfield was excluded from significant management meetings at this American Company, which were conducted exclusively in the Japanese language. Similarly, Mr. Schanfield found that many of Sojitz's important company documents were maintained in Japanese depriving any non-Japanese/non-Asian managers of the information needed to perform. Mr. Schanfield was also assigned a Japanese "shadow" who lacked experience in U.S. audit standards, and sought to force Mr. Schanfield to audit the "Tokyo Way."

As the class action complaint further alleges, Mr. Schanfield reported to the Sojitz top executives that the Company was improperly excluding non- Japanese/non-Asian employees from management. He also reported a number of specific examples of discrimination at Sojitz based on race and national origin, as well as gender and age. In response, he was told by the Sojitz CEO that "This is a Japanese Company and we will do what we please."

Soon thereafter, Mr. Schanfield was terminated without explanation. Mr. Schanfield brings his complaint not just on his own behalf, but on behalf of all Sojitz employees who were discriminated against due to their race and/or national origin. "My hope is to bring about real change at Sojitz and to create full and fair opportunities for all people within its employ."

"Foreign companies are not above the law. When you profit from hard working Americans, you must follow the U.S. anti-discrimination laws," said Douglas H. Wigdor, Mr. Schanfield's attorney who has recent trial verdicts in Federal Court against Wal-Mart for $7.5 million and the Source Magazine and its former owners for approximately $8 million.

About Thompson Wigdor & Gilly: Thompson Wigdor & Gilly LLP http://twglawyers.com is a law firm specializing in high-profile, complex litigation and investigations as well as counseling clients in a wide array of substantive legal areas, including employment law, criminal law, sports and entertainment law, labor relations and civil rights. They can be reached at 212.239.9292 or info@twglawyers.com.

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