Vanguard sued for discrimination over hiring of financial planning manager

The Vanguard Group Inc. is alleged to have violated federal law when it refused to hire an black applicant because of her race, according to a lawsuit filed by the Equal Employment Opportunity Commission.
AUG 09, 2010
The Vanguard Group Inc. is alleged to have violated federal law when it refused to hire an black applicant because of her race, according to a lawsuit filed by the Equal Employment Opportunity Commission. Barbara Alexander was the only black applicant for a financial planning manager position at Vanguard's Charlotte, N.C., office, according to the EEOC suit, which was filed Sept. 30 in U.S. District Court in Philadelphia. During a lengthy application process, she was told she was “obviously qualified for the position,” but Vanguard later claimed it did not select her because she was “unqualified,” in part because she did not have any financial planner certification, the suit alleges. Rebecca Katz, a spokeswoman for Vanguard staunchly refuted the claim. “Vanguard does not tolerate discrimination of any kind and we have a deep commitment to hiring and retaining a diverse work force, believing that diversity of people, ideas and viewpoints is one of our most important assets,” she said in an e-mail today. “We believe that the allegations in the complaint have no merit.” The suit goes on to claim that Vanguard hired a less-qualified white applicant who lacked the certified financial planner designation, and who — unlike Ms. Alexander — did not have work experience in the financial planning area. Ms. Alexander had 14 years of financial management experience and an MBA in finance, according to the EEOC. “Unfortunately, 45 years after enactment of the landmark Civil Rights Act of 1964, the EEOC continues to see far too many cases of race discrimination against African-Americans,” Debra Lawrence, acting regional attorney with the EEOC's Philadelphia district office, said in a statement. “This lawsuit should remind employers that the EEOC will take action when a company impermissibly makes hiring decisions based on the race of the applicants instead of on their experience and qualifications.”

Latest News

SEC alts proposals may spark compliance 'culture shock' for managers
SEC alts proposals may spark compliance 'culture shock' for managers

CFP, CFA and CPA holders could gain accredited investor status as regulators weigh wider private market access for advisory clients

Advisor tech platfoms court firms with discounts, notaries, education
Advisor tech platfoms court firms with discounts, notaries, education

DeepVest, Vanilla and Libretto roll out tools to help financial advisors launch firms, close estate plans and sharpen planning skills

When it comes to retirement, Americans struggling with 'permission to spend,' says Prudential
When it comes to retirement, Americans struggling with 'permission to spend,' says Prudential

“People aren't effectively using their wealth in retirement,” said David Blanchett of Prudential.

NFL referee Shawn Hochuli doubles as LPL-affiliated financial advisor
NFL referee Shawn Hochuli doubles as LPL-affiliated financial advisor

Second-generation NFL ref Shawn Hochuli co-founded IWM Partners in Irvine, California, a wealth management practice with more than $500M in client assets

SEC bars NY advisor who allegedly defrauded elderly client of $2.4 million
SEC bars NY advisor who allegedly defrauded elderly client of $2.4 million

U.S. seniors lose $28.3 billion annually as a result of financial exploitation, according to a 2023 AARP study.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains