Morgan Stanley settles $46 million sex discrimination suit
More often than not, large Wall Street firms settle sex discrimination suits rather than fight them because they don't want the negative publicity. It's safe to assume that when a corporation settles a sex discrimination suit for a whopping $46 million, the allegations are true:
A federal judge this week approved a $46 million settlement of a class- action lawsuit filed by a group of women alleging gender discrimination by their employer, investment bank Morgan Stanley.
The settlement was reached in April and received preliminary approval from U.S. District Court Judge Richard Roberts in July. Roberts will formally approve the settlement Oct. 24 after individual members of the lawsuit have been notified, said James Wiggins, a spokesman for Morgan Stanley.
Six women sued the securities firm last year, alleging that female financial advisers and trainees were discriminated against.
The women claimed they were discriminated against in compensation, promotion, work assignments and other areas of their work with the fortune 500 company.
Although it originally started with six women, the lawsuit was quickly expanded to cover a class of about 3,000 women who worked at Morgan Stanley between Aug. 5, 2003, and June 30, 2007.
As part of the settlement, Wiggins said that the company will have to institute programs "designed to advance the success of women financial advisers at Morgan Stanley."
The $46 million will be split among parties to the lawsuit and to pay attorneys' fees. Morgan Stanley also will spend about $7.5 million on training and other diversity programs.