A U.S. judge has certified a class action lawsuit against Costco Wholesale Corp over allegations of gender discrimination in the store's promotion practices.

Three women plaintiffs say Costco's promotion system has a disparate impact on women employees who seek advancement to general manager and assistant general manager.

A different judge had allowed the case to proceed as a class action against the warehouse club operator in 2007. However, last year a federal appeals court ordered that the decision be reconsidered, in light of a U.S. Supreme Court ruling that derailed a nationwide class action against Wal-Mart Stores Inc .

In his order on Tuesday, U.S. District Judge Edward Chen in San Francisco federal court said the Costco class claims differ from those in the Wal-Mart case in “several material ways”. For example, the size of the Costco class is a “mere fraction” of the proposed Wal-Mart case: approximately 700 people as opposed to 1.5 million, Chen wrote.

Representatives for Costco could not be reached for comment.

Jocelyn Larkin, an attorney for the Impact Fund in California, which represents the plaintiffs in both the Costco and Wal-Mart cases, said Chen took to heart the Supreme Court's instructions that lower court judges should engage in a rigorous analysis.

“The decision is incredibly thorough,” she said.

The case in U.S. District Court, Northern District of California is Shirley “Rae” Ellis et al. vs. Costco Wholesale Corporation, No.04-3341.

Special Reports /

Judge Grants Class Status to Women Suing Costco

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