A federal court delivered a partial ruling Wednesday in a lawsuit against Gannett (GCI) filed by five former employees who claimed the company's diversity-focused policies led to racial discrimination.

In a memorandum opinion and order, the court partially granted and partially denied Gannett's request to dismiss a second amended complaint and to eliminate the class-action claims.

The plaintiffs Steven Bradley, Stephen Crane, Noah Hiles, Barbara Augsdorfer, and Logan Barry alleged that the company enforced racial quotas that influenced hiring decisions, promotions, and work assignments, the court said.

The court said it treated the allegations in the complaint as true but determined that certain class claims were insufficient, leading to a partial dismissal, while allowing the remaining claims to move forward.

The media holding company didn't immediately respond to a request for comment from MT Newswires.

Shares of Gannett were down nearly 1.2% in recent trading.

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