Bank of America has agreed to pay US$39 million to settle a sex discrimination lawsuit brought on behalf of female employees at its Merrill Lynch unit.
The law firms of Lieff Cabraser Heimann & Bernstein and Outten & Golden have agreed a settlement with Bank of America Corp, Merrill Lynch & C and Merrill Lynch, Pierce, Fenner & Smith on behalf of women employed in the US, Puerto Rico, or Guam as Financial Advisors or licensed Financial Advisor trainees at Banc of America Investments Services or Merrill Lynch.
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The complaint charged that BofA and Merrill Lynch were engaged in a practice of gender discrimination against their female financial advisors with respect to business opportunities, compensation, professional support, and other terms and conditions of employment.
The parties entered into a three-year settlement agreement that is subject to court approval in Brooklyn, New York.
According to the accord, the money will be divided between roughly 4,800 women who worked at Bank of America and its subsidiary Merrill Lynch from 2 August 2007 through 15 September 2013.
Further, an Independent Consultant will conduct an internal study of the bank’s FA teaming practices.
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By GlobalDataAlong with a cash fund, the settlement would require changes at the firm to be overseen by an independent monitor.
William Halldin, Bank of America spokesman, said: "The resolution includes a number of additional and enhanced initiatives that will enrich our existing diversity, inclusion and development programs, providing even more opportunities for women to succeed as financial advisers."
Merrill has agreed to change its policies to give women a better chance of succeeding.
"The monetary and programmatic relief this settlement provides furthers these important goals of fairness and opportunity," said Rachel Geman, a partner at Lieff, Cabraser, Heimann & Bernstein.
Lieutenant Julie Moss (U.S. Navy), plaintiffs in this lawsuit, said: "The settlement will advance our efforts to foster diversity and professional success within the workforce. Equality in the workplace should take on the same meaning as it does in our everyday life."
The parties expect to present the settlement for consideration of final approval in mid-December, 2013.
