$24 M Settlement Penned in JPMorgan Bias Class Action Lawsuit

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The plaintiffs in a JPMorgan class action lawsuit reportedly inked a $24 million settlement agreement that would end allegations that the financial firm discriminates against African-American employees.

According to the JPMorgan bias class action lawsuit filed in August 2016, African-American financial advisers were systematically paid less.

Further evidence of discrimination includes the underrepresentation of African-American employees in the JPMorgan workforce, alleged the JPMorgan Chase Bank class action lawsuit.

The JPMorgan worker discrimination class action lawsuit alleged that the discriminatory practices constituted violations of the Civil Rights Act of 1964. The JPMorgan Chase class action lawsuit sought injunctive relief against the financial institution to “reform the challenged practices and make-whole relief for class members.”

Under the terms of the JPMorgan bias class action lawsuit settlement, the firm will set aside $1.5 million to fund inclusion and diversity initiatives.

“These initiatives must be approved by the head of Chase Wealth Management, and have the goals of promoting equal employment opportunity; providing education, preventing or remedying any form of racial discrimination, harassment, or related retaliation; and fostering recruitment, mentoring, employment advancement, or promotion opportunities for African­-Americans at Chase,” noted the motion urging approval of the JPMorgan class action settlement.

Another $3 million will be set into a general diversity and reserve fund. The plaintiffs’ attorneys requested $19.5 million in fees and costs as well as awards for the plaintiffs in the JPMorgan Chase bias class action lawsuit.

According to the motion for preliminary approval of the JPMorgan employee discrimination class action lawsuit settlement, an economic expert from the University of Pennsylvania was retained and analyzed more than four years of employment data from the firm. The motion notes that both the plaintiffs and JPMorgan wish to avoid the expense and time litigation of the class action lawsuit would take.

JPMorgan bias class action lawsuit sought to represent the approximately 250 African-American employees at the major financial institution.

The JPMorgan class action settlement Class Members include “[a]ll African American and/or Black Financial Advisors (‘FAs’), Financial Advisor Associates (‘FAAs’), Senior Financial Advisors (‘SFAs’), or Private Client Advisors (‘PCAs’)…employed by JPMorgan Chase Bank, N.A. or JPMorgan Securities, LLC within Chase Wealth Management” starting April 13, 2013.

The JPMorgan employee class action lawsuit alleged that in addition to the unequal pay African-American employees received, they also had fewer opportunities at the financial institution.

The plaintiffs pointed specifically to JPMorgan’s private clients program that consisted of those who had $250,000 or more to invest. The plaintiffs alleged that African-American financial advisers were given fewer opportunities to join that program.

“Chase provides widely divergent compensation and opportunities to the FAs who service its clients, depending on their race. African Americans are underrepresented as Chase FAs and paid substantially less than their counterparts who are not African American. These racial disparities result from Chase’s systemic, intentional race discrimination and from policies and practices that have an unlawful disparate impact on African Americans,” alleged the JPMorgan bias class action lawsuit.

JPMorgan admits no wrongdoing under the terms of the JPMorgan class action settlement.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Linda D. Friedman, Suzanne E. Bish and George S. Robot of Stowell & Friedman Ltd.

The JPMorgan Chase Employment Discrimination Class Action Lawsuit is Senegal, et al. v. JPMorgan Chase Bank NA, Case No. 1:18­-cv­-06006, in the U.S. District Court for the Northern District of Illinois.