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Duane Reade, the New York/New Jersey drug store chain, has agreed to settle an EEOC lawsuit alleging that it allowed the work environment at one of its New York stores to become hostile by subjecting several female employees to sex and pregnancy discrimination.

The agency alleged that a store manager, Madlaw Diaw, frequently made vulgar remarks about women’s anatomy, sexually propositioned female employees, made lewd comments about them during pregnancies, assigned pregnant women the least desirable store tasks and sometimes grabbed employees’ buttocks while they worked.

The settlement includes a payment of $240,000. The EEOC will continue monitoring the company.

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