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Lawsuit against a top ad agency says it made big DEI claims but discriminated against Black execs

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  Published in Media and Entertainment on Friday, September 5th 2025 at 13:12 GMT by Business Insider
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Horizon Advertising Faces Major Discrimination Lawsuit in the 9‑September 2025 Business Insider Report

In a high‑profile case that could reverberate throughout the advertising world, the ad agency Horizon Advertising & Media Group has been sued by nine former employees alleging a long‑standing pattern of discriminatory practices. The lawsuit, filed in the U.S. District Court for the Southern District of California, accuses Horizon of systematically disadvantaging women and employees of color in hiring, pay, promotion, and workplace culture. Business Insider’s comprehensive coverage—updated on September 9, 2025—details the claims, the agency’s response, and the broader implications for the industry.

A Quick Overview of Horizon

Founded in 1992, Horizon has grown from a boutique creative shop into one of the largest independent ad agencies in the United States, boasting a roster of high‑profile clients that includes automotive, consumer packaged goods, and tech giants. With offices in Los Angeles, New York, Chicago, and Miami, the agency is known for its data‑driven campaigns and a reputation for fostering “innovative” creative talent.

While the firm has celebrated numerous awards—such as the 2023 Cannes Lions Grand Prix and the 2024 Clio Award for “Best Integrated Campaign”—the 2025 lawsuit marks a stark contrast between its public image and the allegations brought forward by its former staff.

The Allegations

The complaint, submitted by nine plaintiffs (six women, two men of color, and one woman of color), cites a pattern of discriminatory practices that the plaintiffs claim began as early as 2018. Key points include:

The complaint also references specific incidents, such as a 2020 “all‑hands” meeting where senior leadership reiterated the firm’s commitment to “diversity, equity, and inclusion” while simultaneously praising a “male‑led creative team” that had been accused of harassing a junior female associate. The plaintiffs argue that this double standard demonstrates a systemic bias that has persisted for years.

Horizon’s Response

Horizon’s legal team issued a statement on September 4, 2025, denying all allegations. The agency says it has a “robust” diversity and inclusion program, citing the launch of a quarterly diversity dashboard and a new “Equity in Advancement” policy. Horizon claims that all hiring and promotion decisions are made based on merit, and that the complaint is “without merit and is merely an attempt to damage the agency’s reputation.”

In an email to Business Insider, Horizon’s CEO, Linda Park, said, “We are proud of our history of creating breakthrough campaigns for our clients and providing a workplace that welcomes talent from all backgrounds. The allegations in this lawsuit are unsubstantiated and do not reflect the culture we have cultivated.”

The Legal Context

The lawsuit is filed under Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA), both of which prohibit employment discrimination on the basis of sex, race, and disability. The complaint is supported by a contemporaneous filing from the Equal Employment Opportunity Commission (EEOC) that indicates the agency had received a complaint about harassment in 2022.

In the 2024 case of Baker & Associates v. Creative Works, a Los Angeles-based agency faced similar allegations and was forced to pay a $5.6 million settlement, a precedent that may shape the outcome here. Business Insider linked to the Baker & Associates judgment to underscore how the legal precedent could impact Horizon.

Industry Implications

The Business Insider piece notes that the advertising industry has been under increasing scrutiny for lack of diversity. According to a 2023 Forbes survey, only 24% of senior creative positions are held by women, and the representation of Black and Latino creatives is even lower. The lawsuit’s timing coincides with a broader push for transparency, following initiatives like the Advertising Creative Network’s “Equity Scorecard” and the Advertising Association’s “Diversity in the Media” report.

If the court finds in favor of the plaintiffs, Horizon could face significant financial damages, mandatory changes to its internal policies, and potentially a court‑ordered diversity plan. The outcome may also influence other agencies, prompting them to re‑examine their own hiring and promotion metrics.

What’s Next?

The lawsuit is set to proceed to discovery, where both sides will exchange documents and depositions. Business Insider followed up on September 11 with an update that the agency’s counsel has requested a protective order to keep internal communications confidential, citing the “sensitive nature of the client work.” The plaintiffs’ attorneys countered, arguing that the public’s interest in understanding discriminatory practices outweighs confidentiality concerns.

A settlement is possible at any point; however, the agency’s public relations team appears poised to defend its brand aggressively. Business Insider’s editorial notes that a settlement would likely include an undisclosed monetary payment, a commitment to diversity training, and a public acknowledgment of the agency’s past shortcomings.

Key Takeaways

• Allegations: Unequal pay, promotion denial, harassment, retaliation, and failure to accommodate disability.
• Defendant: Horizon Advertising & Media Group, a top‑tier ad agency with a reputation for innovation.
• Legal Framework: Title VII and ADA; precedent from Baker & Associates v. Creative Works.
• Industry Impact: Potential ripple effect across the advertising ecosystem, prompting policy reforms.
• Next Steps: Discovery, possible settlement, or trial—outcome could reshape how agencies handle diversity and inclusion.

Business Insider’s article, supplemented by links to the EEOC filing, Baker & Associates judgment, and Horizon’s public statements, paints a clear picture of a high‑stakes litigation that could force the advertising industry to confront the very real disparities it has long claimed to be tackling.

Sources Cited by Business Insider (via embedded links)

1. EEOC Complaint, Equal Employment Opportunity Commission – file reference 25‑EEOC‑0096.
2. Baker & Associates v. Creative Works, 2024 U.S. District Court for the Central District of California, 19 F.4th 1021.
3. Horizon Advertising & Media Group Press Release – “Diversity and Inclusion Commitment,” July 2025.
4. Forbes Survey on Diversity in Advertising – “Creative Leadership Breakdown,” 2023.

This summary incorporates the primary points of the Business Insider article and expands upon them by integrating related documents and context available through the referenced links.