A Chicago-area bakery and a staffing firm agreed to pay $1.04 million to settle a class action lawsuit alleging racial bias, according to a filing in federal court. Parties in the case are now seeking preliminary approval of the settlement.

Gold Standard Bakery allegedly directed staffing firm Personnel Staffing Group LLC — which does business as MVP — to not send African American workers, according to court documents. The request was made to the staffing firm’s office in Cicero, Illinois, and the lawsuit alleges African American workers were denied the jobs. Gold Standard and MVP denied the claims in the settlement.

On occasions when African American workers were sent, they were marked “Do Not Return” and were given only one-off assignments in jobs with the most unpleasant working conditions, according to court documents.

The long-running case was first brought forward in 2012. Court filings indicate both the bakery and the staffing firm were in a precarious financial condition and helped prompt the settlement..

The class involves approximately 1,000 people, according to court records. They are African American workers who sought work assignments at Gold Standard Bakery through MVP but were not assigned to the bakery when a position was available during the period of Feb. 27, 2011, through Dec. 31, 2014.

Of the $1.04 million that will go to class members, Gold Standard’s share is $675,000, while MVP’s is $365,000.

An additional $1.325 million for plaintiffs attorneys’ fees and costs is also on the table.

There is also a secondary class in the lawsuit. It includes African American workers who sought work assignments through MVP to work at Vee Pak, but were not assigned to Vee Pak. This was during the period of Jan. 1, 2011, through Oct. 21, 2013. MVP contributed $135,000 toward a settlement in the subclass, but those funds will be held in trust until a lawsuit against Vee Pak is resolved.