Morgan Stanley Sex Discrimination Case Settled for $46 Million
NEW YORK, NY -- May 4, 2007 -- The Wall Street giant, Morgan Stanley, has set up a $46 million fund to settle a sex discrimination lawsuit (Augst-Johnson v. Morgan Stanley & Co. Inc., 06-CV-1142, U.S. District Court, District of Columbia). Eight women, representing a class of about 2,700 female financial advisors and trainees, charged that the company paid women less than men and assigned accounts in a biased way (Bloomberg News, April 30, 2007).
Plaintiffs estimate that the earnings of current employees within the class will be increased by about $16 million over the next five years as a result of the agreement (NY Times, April 25, 2007). Morgan Stanley must also adopt new programs in account redistribution, training and management development within its wealth management division.
The United States District Court for the District of Columbia must approve the settlement before it can go into effect. The agreement applies to financial advisers or registered financial adviser trainees who worked in the wealth management division of Morgan Stanley any time from August 5, 2003, until the settlement approval date.
Morgan Stanley's History of Sex Discrimination Problems
This is not the first time that Morgan Stanley has been sued over its employment practices. Almost three years ago, the company settled for $54 million in the case of a former bond saleswoman and 340 female employees in its institutional equities division (Equal Employment Opportunity Commission and Allison Schieffelin v. Morgan Stanley, United States District Court, SD New York, 01 Civ. 8421). The charges were sex discrimination, including paying women lower wages than men, giving them fewer promotions and wrongfully terminating a woman's employment when she filed a complaint. The settlement agreement required changes in training and policy as well as a new diversity education program.
Have You Been a Victim of Sex Discrimination?
The continuing problems at Morgan Stanley point to an unfortunate fact--women still face sex discrimination in hiring, compensation and promotion. In the year 2006, for example, the Equal Employment Opportunity Commission received 23,247 sex discrimination claims, and no doubt many more cases went unreported.
The lawyers at Brayton Purcell believe in equal rights in the workplace, regardless of gender. If you believe that you have been a victim of sex discrimination, please feel free to contact us to learn about your legal options.