Edward Jones to Pay $34M to Settle Racial Discrimination Claims

UPDATE:

• The Court granted this settlement final approval on July 12, 2021.
• Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

Edward Jones has agreed to a $34 million settlement resolving claims of racial discrimination.

Lead plaintiff Wayne Bland is a former broker who worked at Edward Jones from 2014 to 2016, according to Investment News.

In his 2018 class action lawsuit, Bland alleged Edward Jones had companywide policies and practices when it came to training, compensation, and other matters that “unlawfully segregate its workforce” and deny Black employees opportunities for income and advancement.

But even before Black advisers are allegedly denied these opportunities, some may find it difficult to even get in the door.

The Edward Jones discrimination class action lawsuit argued the company is less diverse than other similar companies, with 94 percent of its financial advisers being white.

Bland’s class action lawsuit claimed the remaining 6 percent is made up of all racial minorities, not just Black employees.

These numbers are behind the national average, Bland claimed. Throughout the United States, an average of 21 percent of financial advisors are non-white; 8.1 percent are Black.

The settlement covers all Black or African-American field-based financial advisors who worked for Edward Jones in the United States between May 24, 2014, and Dec. 31, 2020, according to Investment News. About 800 current and former advisers meet that criteria.

Class Members are expected to be entitled to $42,500, before legal fees and other costs are deducted.

In addition to the monetary relief, Edward Jones will create a financial adviser council to address diversity concerns, Investment News reported. The company also is lowering the amount advisers are required to repay in training costs if they leave to go to another company. The repayment amount will be lowered to $50,000 from $75,000.

“We reached this agreement because it is in the best interest of Edward Jones and allows our firm to move forward,” an email from a company spokesperson said, according to Investment News. “We remain committed to creating a place of belonging for our associates and our clients and making a positive impact in our communities.”

Have you faced racial discrimination in your workplace? Tell us about your experience in the comment section below.

The plaintiff is represented by Linda D. Friedman, Suzanne E. Bish, and George S. Robot of Stowell & Friedman LTD.

The Edward Jones Racial Discrimination Class Action Lawsuit is Wayne Bland, et al. v. Edward D. Jones & Co. LP, et al., Case No. 1:18-cv-03673, in the U.S. District Court for the Northern District of Illinois, Eastern Division.

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