Lawyers for Morgan Stanley announced Monday, October 29 that their client had agreed to pay $46,000,000 in cash to resolve a class action gender discrimination lawsuit filed by female employees of the company. The terms of the settlement include not only the financial compensation but requires Morgan Stanley to make changes to the manner in which it compensates and promotes employees as well as requiring the company to retain two independent experts to create an approach aimed at increasing business opportunities for female financial advisors.
In a ruling handed down late Friday, District Court Judge Richard W. Roberts for the District of Columbia agreed to the terms of the settlement, which included increasing female financial advisers’ earnings by at least $16 million over the next five years. The company is also expected to spend $7.5 million on diversity-related programs, according to Mehri & Skalet PLLC, one of the three firms representing the plaintiffs.
The suit was filed on charges of gender discrimination of female financial advisers and registered financial adviser trainees employed by Morgan Stanley’s global wealth management group from August 5, 2003 through June 30, 2007.
For more information on this subject, please refer to the section on Employment Discrimination and Workers Compensation.