Black employees at three Xerox operations in Cincinnati had to endure racist treatment, according to the US Equal Employment Opportunity Commission.
The Wall Street Journal reported that the Commission had evidence that black staff "were subjected to a racially hostile environment", and were disciplined more frequently than white co-workers.
Xerox has disputed the findings, however, maintaining that an internal investigation found no evidence of discrimination.
A spokesman for Xerox defended the firm's record on race, telling Associated Press that around a third of its workers belong to minority groups, and that 37 per cent of senior executives are women, are from minority backgrounds or are both.
"Diversity is one of our core values," he said.
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