October 12, 2007
Morgan Stanley settles lawsuit for $46M
A federal judge on Thursday approved a $46 million settlement of a class-action lawsuit filed by a group of women alleging gender discrimination by their employer, investment bank Morgan Stanley.
The settlement was reached in April and received preliminary approval from U.S. District Court Judge Richard Roberts in July. Roberts will formally approve the settlement Oct. 24 after individual members of the lawsuit have been notified, said James Wiggins, a spokesman for Morgan Stanley.
Six women sued the securities firm last year, alleging that female financial advisers and trainees were discriminated against in compensation, promotion, work assignments and other areas. The suit was expanded to cover a class of approximately 3,000 women who worked at Morgan Stanley between Aug. 5, 2003 and June 30, 2007.
The settlement was reached in April and received preliminary approval from U.S. District Court Judge Richard Roberts in July. Roberts will formally approve the settlement Oct. 24 after individual members of the lawsuit have been notified, said James Wiggins, a spokesman for Morgan Stanley.
Six women sued the securities firm last year, alleging that female financial advisers and trainees were discriminated against in compensation, promotion, work assignments and other areas. The suit was expanded to cover a class of approximately 3,000 women who worked at Morgan Stanley between Aug. 5, 2003 and June 30, 2007.
As part of the settlement, Wiggins said the company will institute a number of programs "designed to advance the success of women financial advisers at Morgan Stanley."
The $46 million will be split among parties to the lawsuit and to pay attorneys' fees. Morgan Stanley also will spend about $7.5 million on training and other diversity programs.
The suit stemmed from an investigation by the Women on Wall Street Project, which was formed in April 2004 by the National Council of Women's Organizations and the law firm Mehri & Skalet PLLC.
Morgan Stanley's shares rose 61 cents to $68.14 in afternoon trading Thursday.
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