“Merrill Lynch to Pay $19.95 Million in Discrimination Settlement: What You Need to Know”

Merrill Lynch has agreed to pay $19.95 million to settle a class-action lawsuit alleging discrimination against African American financial advisors. The lawsuit, dating back to July 2021, was brought by four former Merrill advisors who challenged discriminatory compensation and promotion practices at the firm. They claimed that African American brokers were given fewer business opportunities, leading to higher termination rates and fewer corporate titles compared to their white counterparts.

The proposed settlement aims to compensate at least 1,000 eligible class members who were disadvantaged due to their race, cover administration costs, and allocate $6.6 million for attorney fees. Merrill Lynch stated that the agreement allows them to focus on initiatives to support Black financial advisors and their clients. The firm has implemented various diversity and inclusion programs over the past decade, resulting in a 40% increase in Black financial advisors and a significant rise in team representation.

As part of the settlement, Merrill Lynch agreed to policy changes focusing on diversity training, teaming practices, and creating an inclusive work environment. The firm will educate employees on recognizing implicit bias, analyze diversity metrics for African American advisors, and review teaming approval processes to ensure fair selection criteria. Additionally, Merrill will introduce workplace initiatives, targeted mentoring, and pay equity analyses by an outside labor economist for the next five years.

This settlement follows a previous $160 million settlement in 2013 for a race-discrimination case, where Merrill implemented policies to support Black advisors’ advancement. The representation of Black financial advisors at Merrill Lynch and its parent company, Bank of America, remains below the U.S. population average, prompting the firm to focus on improving diversity and inclusion efforts.

The four plaintiffs in the lawsuit, Lucinda J. Council, Ravynne Gilmore, Verna Dottin-Maitland, and Hilari Ngufor, have since left Merrill Lynch and pursued careers with other financial firms. Prior to the class settlement, Merrill reached a separate agreement with the named plaintiffs for an undisclosed amount.

Overall, the settlement reflects Merrill Lynch’s commitment to addressing racial discrimination within its organization and implementing measures to promote diversity and inclusion among its financial advisors. The firm’s efforts to improve representation and support for Black advisors signal a step towards creating a more equitable and inclusive workplace environment.