Settlement Reached in Racial Discrimination Lawsuit

By RANDALL CHASE
|  Friday, Aug 23, 2013  |  Updated 12:18 PM EDT
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Settlement Reached in Racial Discrimination Lawsuit

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A bankrupt hotel operating company led by a Dover developer facing federal fraud charges has agreed to pay $47,000 to settle a racial discrimination lawsuit.

A federal judge on Friday signed a consent judgment in a 2008 lawsuit filed by the U.S. Equal Employment Opportunity against Riverwalk Hospitality Group. The EEOC alleged that Riverwalk, led by developer Michael Zimmerman, fired a black employee because of her race and treated her and other black employees unfairly.

Riverwalk, which operated the Microtel Inn Suites in Dover and sought bankruptcy protection last year, agreed to pay $38,000 to the fired employee and $4,500 each to two other women.

Zimmerman is facing federal charges of diverting construction loans for unauthorized purposes, and state charges of illegal campaign contributions to Gov. Jack Markell in 2008.

 

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