Merrill Lynch to pay $20M in financial advisor discrimination settlement

Merrill Lynch settlement overview: 

• Who: Merrill Lynch agreed to pay a $20 million settlement to financial advisors.
• Why: Merrill Lynch was accused of discriminating against Black financial advisors in both pay and lack of promotions.
• Where: The Merrill Lynch discrimination settlement came in federal court in Florida.

Merrill Lynch has agreed to pay a $20 million settlement to Black current and former financial advisors after the company was accused of discriminating against Black financial advisors in both pay and career advancement.

The Merrill Lynch discrimination accusations led to an agreement to update the company’s policies and practices, which is intended to create more opportunities for the Black financial advisors who the company allegedly discriminated against. The new policies are set to be in place for at least five years.

The $20 million settlement will include individual payments to the potential 1,400 class members along with attorneys’ fees and settlement administration costs.

“The Parties have agreed that the payment amount will be calculated based on an assignment of points for each workweek worked during the Class Period in a relevant job title,”’ the settlement notice says.

Merrill Lynch admitted no wrongdoing

The plaintiffs claimed that Black financial advisors were terminated more often, failed to be promoted and received less compensation than their white counterparts.

Merill Lynch, however, admitted to no wrongdoing in agreeing to the settlement.

“Defendants believe that they treat all employees fairly and equally regardless of race or color and are committed to ensuring equal employment opportunity,” the settlement notice says. “To that end, Defendants believe that all Financial Advisors have the same opportunities to earn compensation regardless of race or color and are paid based on their success in advising clients.”

Another class action against Merrill Lynch, filed in December, claims the company pays retirement account holders unreasonably low interest rates in volation of the Federal Reserve’s interest rate requirements.

Have you been discriminated against at work based on race and/or color? Let us know in the comments.

The plaintiff is represented by Gregg I. Shavitz and Paolo Meireles of Shavitz Law Group P.A. and Adam T. Klein, Chauniqua D. Young and Courtney J. Hinkle of Outten & Golden LLP 

The Merrill Lynch settlement is Council, et al. v. Merrill Lynch, Pierce, Fenner & Smith Inc., et al., Case No. 3:24-cv-00534, in the U.S. District Court for the Middle District of Florida.

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