Sexual harassment allegations emerge in Sterling Jewelers pay discrimination case

— -- Hundreds of former and current employees at Sterling Jewelers, the multibillion-dollar parent company behind Kay Jewelers and Jared the Galleria of Jewelry, say sexual harassment was widespread at the company, with some alleging they were pressured to perform sexual favors to get promoted or keep their jobs.

The newly released statements from the accusers are part of a private class-action case against Ohio-based Sterling over claims of discrimination in promotions and pay. The case, being heard by a private arbitrator, was approved as a class action on behalf of 69,000 current and former employees. The plaintiffs claim women were discriminated both in compensation and in promotions.

The sworn statements include allegations that Sterling had a policy "prohibiting employees from discussing their pay with each other," which they say "made it difficult for women to identify instances where they were paid less than male employees performing the same job." One former female employee said she was making a yearly salary of between $42,000 and $43,000 when she witnessed a male employee at another Kay Jewelers store in the same state complain his salary was only $70,000.

The woman stated her supervisor "tried to console" her by telling her the male employee was "'on his way out' because his numbers were down."

Another sworn statement in the arbitration case also alleges that "female sales associates were hired at about $1 an hour less than male sales associates."

Numerous sworn statements also describe a corporate culture at Sterling in which annual managers' retreats allegedly became no-spouses allowed "booze fests" at which male executives "prowled around the [resort] like dogs that were let out of their cage," and that "there was no one to protect female managers from them," arbitration documents show.

"Managers at all levels in the company either participated in it or condoned it," Joseph Sellers, the plaintiffs’ lawyer, told ABC News.

The alleged instances took place over the course of many years, from the late 1990s to the 2000s, according to the sworn statements. The arbitration documents were first reported by The Washington Post.

In one instance, witnesses alleged they spotted Mark Light, now the CEO at Sterling's parent company, Signet, at a meeting "being entertained" by female employees "in various states of undress." The witnesses alleged Light also joined the female employees in a swimming pool.

Heather Ballou, a former store manager at Kay Jewelers who is part of the arbitration case, started working for Sterling in 2000 as a sales associate in Pensacola, Florida, and was promoted internally to different stores until she was eventually terminated as store manager in 2009.

Ballou said she attended four of Sterling's annual managers' meetings, a multi-day event attended by managers up to the executive level and human resources staff, between 2005 and 2008. She also says she was propositioned while employed with the company. "At one meeting, yes, I was propositioned for sex in return for a promise to be brought back to this district for a promotion," Ballou said. "I am not proud to say but I did it. I mean, I wanted to get home."

Ballou described the company's culture as a crude "boy's club" and compared it to Kay Jewelers' signature slogan, "Every kiss begins with Kay."

"They had no idea," she said. "They think, 'Every kiss begins with Kay' but they don't know how many unwanted kisses come from that kiss."

Sterling told ABC News in a statement the testimonies alleging sexual harassment present a "distorted and inaccurate picture of our company," and stressed they are not part of the actual lawsuit on promotions and pay.

"Since the case was filed in 2008, it has never included legal claims of sexual harassment or hostile work environment discrimination," the statement read.

The company did not comment specifically on the allegations surrounding Light, who could not be reached by ABC News.

The company also said the claims about professional advancement are "not substantiated by the facts and certainly do not reflect our culture."

The plaintiffs are seeking back pay among other damages.