Black Financial Advisors Allege Unequal Treatment, Reach Agreement
Merrill Lynch, a major Wall Street brokerage firm owned by Bank of America, has agreed to pay nearly $20 million to settle a class-action lawsuit accusing them of racial discrimination against Black financial advisors.
Lawsuit Details Allegations of Bias
The lawsuit, filed last week in Florida by four former Black Merrill Lynch advisors, alleges a pattern of discriminatory practices. Key allegations include:
- Black financial advisors received lower compensation and fewer promotions compared to white counterparts.
- Black advisors were terminated at higher rates than white advisors.
- Black advisors faced limited opportunities for advancement due to a lack of support and unequal access to teams.
The lawsuit claims these practices constitute systemic discrimination based on company-wide policies.
Settlement Reached, Details Emerge
According to court documents filed on May 24th, Merrill Lynch has agreed to a settlement of $19.95 million. After accounting for attorney fees and administrative costs, the remaining sum will be divided amongst eligible class members, estimated to be around 1,375 Black financial advisors who may have been impacted.
The settlement, which requires court approval, also includes “programmatic relief.” This involves an internal review of Merrill Lynch’s current and past diversity initiatives, along with a data analysis to assess diversity metrics and pay equity within the company. Importantly, the settlement agreement does not require Merrill Lynch to admit any wrongdoing.
