Female advisers slap Bank of America with sex discrimination suit

Female advisers slap Bank of America with sex discrimination suit
Three female advisers claim they were treated as “second-class citizens,” according to a class action lawsuit filed against the bank
NOV 17, 2010
Three female advisers today filed a federal class action against Bank of America Corp. alleging sex discrimination. The plaintiffs — Judy Calibuso, Julie Moss and Dianne Goedtel — claim that they were discriminated against as financial advisers working at Bank of America Merrill Lynch in the opportunities made available to them, including account distributions; their pay; and the professional support they were provided. The plaintiffs also claim that they were retaliated against when they complained about their treatment. They are seeking injunctive and declaratory relief, an award of back and front pay, and compensatory and punitive damages. The suit was filed in the United States District Court for the Eastern District of New York. Each of the plaintiffs first filed a complaint with the U.S. Equal Employment Opportunity Commission, and each was issued a right to sue letter. The two firms representing the women, Outten & Golden LLP and Lieff Cabraser Heimann & Bernstein LLP, have experience with this type of case. Outten & Golden successfully represented lead plaintiff Allison Schieffelin and the U.S. Equal Employment Opportunity Commission in a 2001 case against Morgan Stanley, which resulted in a $54 million settlement. The two firms worked together on another bias case against Smith Barney, which resulted in a $33 million settlement. Of the three plaintiffs in this case, only Ms. Calibuso is still employed by BofA Merrill Lynch, and works in the firm's Miami office. She has been a financial adviser for 15 years. Ms. Goedtel, who worked at BofA from 2006 to 2007, is now a financial adviser with a competing firm that was not identified in the claim, and Ms. Moss, who was with BofA from 2003 to 2006, is on military leave. According to the complaint, “This case is about deep-rooted and pervasive gender discrimination at the nation's largest bank and brokerage firm.” The complaint continues: “Beneath the veneer of a world-class financial institution, defendants treat their female financial advisers as second-class citizens.” In a press release issued by Lieff Cabraser Heimann & Bernstein, Ms. Calibuso said, “I have come forward to help women at Merrill Lynch and Bank of America keep the company true to its promise of being the ‘bank of opportunity' for all of us, and not just for male employees. My hope is that this lawsuit will bring change to Merrill Lynch's and Bank of America's policies and corporate culture.” A spokeswoman for BofA, Shirley Norton, denied these allegations in an e-mail, writing: “We deny the allegations and the bank will vigorously defend against the claims. Bank of America has a strong track record of hiring and developing associates and has been recognized for its success in creating and supporting a diverse and inclusive workforce. We do not tolerate discrimination and discrimination of the type alleged in the complaint violates the bank's policies and values. Bank of America is regularly recognized as one of the top companies for women for its diversity policies.”

Latest News

Why fixed income still belongs in your clients' portfolios
Why fixed income still belongs in your clients' portfolios

In an era of AI euphoria and market FOMO, getting back to basics with fixed income may be the most contrarian and most important move advisors can make.

Voya expands advisor managed accounts to add private market assets
Voya expands advisor managed accounts to add private market assets

Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.

With executives leaving, Osaic’s Reid now in the spotlight
With executives leaving, Osaic’s Reid now in the spotlight

Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.

Investors sue crypto fund and platform, alleging $1.5 million never returned
Investors sue crypto fund and platform, alleging $1.5 million never returned

Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch

Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL
Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL

The advisors on the move include two brothers leading a family practice in Connecticut, and a husband-and-wife tandem working with business owners in the West Coast.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.