CHICAGO (AP) — Lawyers for hundreds of black financial advisers have reached a $160 million settlement in a lawsuit accusing Wall Street brokerage giant Merrill Lynch of racial discrimination, a plaintiffs’ attorney said Wednesday.
If approved by a federal judge in Chicago as expected, the payout by Merrill Lynch to around 1,200 plaintiffs would be one of the largest ever in a racial discrimination case, Chicago-based attorney Suzanne E. Bish said.
Bank of America-owned Merrill Lynch — one of the world’s largest brokerages with more than 15,000 financial advisers — issued a statement Wednesday saying only, “We’re not at this point commenting on the existence of the settlement nor the status of a settlement.”
The primary plaintiff, George McReynolds, alleged a pattern of discrimination that resulted in blacks having lower production and making less money than white men at the company. McReynolds, of Nashville, Tenn., is still employed at Merrill Lynch, Bish said.
The settlement coincides with the 50th anniversary of Martin Luther King Jr.‘s “I Have a Dream Speech,” Bish noted. She said she hopes the case will help ensure the kind of equal opportunity King spoke about in Washington, D.C.
“I’m getting goose bumps thinking about it,” she said about coincidence that settle came around the anniversary. “What (the plaintiffs) wanted to achieve was the same opportunities for the next generation — for their children.”
Bish said the settlement should force changes beyond the company singled out as the defendant in the eight-year-old lawsuit.
“They are leaders on Wall Street,” she said. “And increasing opportunities for African-Americans at Merrill Lynch should spill over to the rest of Wall Street.”