On March 31, 2005, plaintiffs in Northern California filed a nationwide class-action lawsuit on behalf of female Financial Consultants who alleged that Smith Barney discriminated against them in account distribution, business leads, referral business, partnership opportunities, and sales support. In November 2006, an amended complaint was filed, which added additional plaintiffs from Southern California and Florida, and amplified and clarified the allegations in the complaint to conform with the evidence plaintiffs have obtained through extensive discovery. The suit is brought on behalf of a nationwide class of all female Financial Consultants employed at Smith Barney since August 30, 2003, and a California subclass of all female Financial Consultants employed at Smith Barney in California since June 25, 2003.
We are pleased to announce that on August 13, 2008, U.S. District Judge Phyllis Hamilton granted final approval to a settlement of this gender discrimination case against Smith Barney. To read a copy of the Court’s order, click here to read the Final Approval Order.
Notice of the Settlement setting forth your rights and options under the settlement was mailed to the Class Members on May 20, 2008. The deadline to file a claim under the settlement is September 17, 2008.
Plaintiffs alleged that Smith Barney discriminated against female Financial Advisors in compensation and business opportunities. The parties entered into a four-year settlement agreement that provides for comprehensive injunctive relief and significant monetary relief for the following Settlement Class:
· All women employed as Financial Advisors in (i) the United States branches of Smith Barney’s retail brokerage division at any time from August 30, 2003 through March 1, 2008; or (ii) the California branches of Smith Barney’s retail brokerage division at any time from June 25, 2003 through March 1, 2008.
The settlement includes comprehensive injunctive relief regarding account distributions, partnership arrangements, branch manager promotions, retention, diversity training, and complaint processing, among other things. The settlement also provides that an independent Diversity Monitor and an independent Industrial Psychologist will be appointed to effectuate the terms of the Agreement. In addition, the settlement establishes a significant class monetary settlement fund of $33 million plus interest now earning on the fund. We believe this is an excellent resolution of the case for the plaintiffs and the class of women Financial Advisors at Smith Barney.
If you have any questions about this case or the settlement, feel free to contact Anna Pohl at (202) 822-5100.
