Merrill Lynch agrees to nearly $20M settlement for racial class action
Merrill Lynch and its parent company, Bank of America, have are paying nearly $20 million to resolve a class action lawsuit alleging discriminatory practices against African American financial advisors.
The wirehouse has agreed to a $19.95 million settlement, pending court approval, which addresses claims that the wirehouse’s policies have limited business opportunities, client leads, and compensation for African American advisors since 2016.
The plaintiffs, four former Merrill Lynch financial advisors, argue that systemic discrimination has resulted in fewer career advancement opportunities and higher termination rates for African American advisors compared to their white counterparts.
The lawsuit, filed in the U.S. District Court for the Middle District of Florida, claims these practices have caused significant professional and financial harm to African American employees.
“African-American Financial Advisors were terminated (or ‘washed out’) from employment with Defendants at higher rates than their White counterparts and fail to advance to more senior roles,” the plaintiffs allege.
The complaint further highlights a gap in compensation and promotions between African American and white advisors at Merrill Lynch.
The legal battle’s roots go back to July 2021, when ex-Merrill advisors Lucinda Council and Ravynne Gilmore filed a lawsuit against their former employer in the U.S. District Court for the Eastern District of Michigan.
That suit claimed that African American advisors faced systemic discrimination, resulting in lower compensation and fewer promotions. The two voluntarily dismissed that action as settlement talks progressed, but the suit was refiled in January 2022 in Palm Beach County, Florida, before being
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