Boom-boom lawyers too cozy?

Boom-boom lawyers too cozy?
The sexual harassment lawsuit saga at Salomon Smith Barney Inc. is about to take a bizarre twist.
NOV 15, 1999
By  Jon Birger
Four of the plaintiffs are preparing to file a motion in U.S. District Court in Manhattan that would remove their longtime attorneys, Mary Stowell and Linda Friedman, from the case. Beth Walker, a former Smith Barney employee maintains that the Chicago firm of Stowell & Friedman has become too cozy with Smith Barney, a unit of Citigroup. She says the lawyers have agreed to continuances harmful to clients' interests. Ms. Walker points out that although Judge Constance Baker Motley approved a settlement last year of up to $12 million in legal fees to Stowell & Friedman, the plaintiffs have yet to receive their share. Under the settlement, Smith Barney was supposed to make offers in July to each plaintiff, but continuances pushed the date back to Nov. 21. Mediators will hear the cases of plaintiffs who reject the offers. "I'm willing to live with the settlement," says Ms. Walker. "But we're going into a year with this thing." Ms. Stowell and Ms. Friedman argue that the delays are typical for a complex class action with 22,000 plaintiffs. They say individual awards, when distributed, should range from a few thousand to several hundred thousand dollars each. Ms. Stowell and Ms. Friedman also contend that the law firms retained by the dissident plaintiffs--Spriggs & Davis in Tallahassee, Fla., and Sprenger & Lang in Minneapolis--have manipulated their clients in a bid to get their hands on millions of dollars in legal fees yet to be paid out. Kent Spriggs of Spriggs & Davis declined to comment. Sprenger & Lang could not be reached. The original class action stemmed from allegations made by employees of a Smith Barney brokerage in Garden City, L.I. The most lurid claims involved a downstairs "boom-boom room," where male managers allegedly groped and verbally harassed female subordinates.

Latest News

Envestnet taps Atria alum Sean Meighan to sharpen RIA focus
Envestnet taps Atria alum Sean Meighan to sharpen RIA focus

The fintech giant is doubling down on its strategy to reach independent advisors through a newly created leadership role.

LPL, Evercore welcome West Coast breakaways
LPL, Evercore welcome West Coast breakaways

The two firms are strengthening their presence in California with advisor teams from RBC and Silicon Valley Bank.

Supreme Court slaps down brokerage's appeal vs. FINRA expulsion case
Supreme Court slaps down brokerage's appeal vs. FINRA expulsion case

The high court's decision rebuffing Alpine Securities marks a setback for a broader challenge to Wall Street's reliance on self-regulatory organizations.

RIA moves: Arax extends Midwestern reach, Steward Partners debuts in Arizona
RIA moves: Arax extends Midwestern reach, Steward Partners debuts in Arizona

Arax acquires a boutique firm's $4 billion RIA business in Michigan as Steward Partners continues its Southwestern expansion.

In this hi-tech world of finance, JPMorgan has an old school strategy to woo HNWs
In this hi-tech world of finance, JPMorgan has an old school strategy to woo HNWs

Wealth management is a key focus for a new service tier.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.