New York, NY: (Apr-03-08) A class action gender discrimination lawsuit was brought against Citigroup Inc., alleging that 2,500 current and former female brokers at its Smith Barney unit were denied promotions on the basis of their gender. The suit, filed in 2005, stated that the company prevented female brokers from competing fairly with men for new accounts, promotions and pay, and depriving women of equal training and sales support. The Smith Barney unit was further accused of using past performance, which they called the results of historical discrimination, as a means to award business and pay.
Sources on both sides said that the parties had agreed to resolve the dispute by entering into a settlement agreement. Under the terms of the deal, Citigroup Inc. has agreed to pay $33 million to about 2,500 current and former female brokers at the Smith Barney unit. Officials said that the deal provides a significant recovery to the class and said that the payout comfortably falls within the range of reasonableness. Additionally, the company also agreed to change how it awards bonuses and assigns accounts, and said that it will adopt measures to help retain and promote women. [
