Vanguard Group announced it will pay $300,000 to settle a lawsuit brought by the Equal Employment Opportunity Commission accusing it of racial bias in its hiring practices.

The EEOC alleged in a federal complaint filed in September that the mutual fund company decided not to hire Barbara Alexander as a financial planning manager because she was black even after she was told during the hiring process, including roughly 13 interviews, that she was qualified for the job. Alexander has worked in the industry for 14 years. According to the EEOC, Vanguard instead offered the job to two less-qualified white men, and one accepted.

According to the settlement, which was filed in U.S. district court in Philadelphia on Monday, Vanguard, of Malvern, Pa., also agreed to enter a two-year consent decree calling for more anti-discrimination training for managers and supervisors, and other remedies. "We are pleased that we were able to work with the EEOC to resolve this claim, which is without merit and unsubstantiated," Vanguard said in a statement.

"Vanguard is committed to diversity and to providing an inclusive and fair environment for all our employees. We entered into this settlement to avoid the cost and distraction of protracted litigation."

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