San Francisco, CA: (Aug-06-07) Over 1,200 African American and Latino financial advisors and registered financial advisor trainees brought a class action lawsuit against their employer Morgan Stanley & Co. Incorporated, alleging that the company favored inequities in opportunities for African Americans and Latinos in the distribution of accounts and other business opportunities. The class included African American and Latino financial advisors and registered financial advisor trainees employed at Morgan Stanley at any time since October 12, 2002.
In a settlement reached, the parties entered into a five year settlement agreement that includes comprehensive injunctive relief regarding recruiting and hiring, account distribution policies, partnership arrangements, promotions, retention, diversity training, and complaint processing, among other things. Further, the settlement provides that an independent Diversity Monitor will be appointed to effectuate the terms of the Agreement. A significant class monetary settlement fund was also established and a Special Master is expected to determine the allocation of monies among the class. The terms of the settlement are presently confidential and will be revealed in a public filing with Federal Judge Thelton Henderson of San Francisco in the near future. [DBUSINESS NEWS: RACIAL DISCRIMINATION]
