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Compliance March 16, 2007
Morgan Stanley Resolves Sex Discrimination Suit
March 16, 2007 (PLANSPONSOR.com) - Morgan Stanley
agreed to settle a discrimination lawsuit brought by
thousands of its female financial advisers, who claimed the
firm paid its female brokers less than their male
counterparts.
Reported by Adrien Martin
The suit was filed by six former brokers last June, but later added more than 3,000 claimants who worked at Morgan Stanley from August 5, 2003 to the present (See Morgan Stanley Financial Advisors File Gender Discrimination Suit ).
In particular, the suit said that Morgan Stanley offered more favorable training and mentoring as well as more lucrative accounts and promotions to men, Reuters reported. According to the wire service, some of the plaintiffs said in August 2005 they were fired because they were female when the firm terminated about 1,000 brokers.
Last month, the lead plaintiffs and the brokerage firm reached a settlement and signed a memorandum of understanding, according to a status report filed in U.S. District Court in Washington on February 26.
A formal settlement and request for preliminary approval
will be filed in court in four to six weeks, according to
Reuters.