Seven years later, plaintiffs win 'Round 7' in Merrill bias suit

Seven years later, plaintiffs win 'Round 7' in Merrill bias suit
Class action discrimination suit looks set to go to trial after latest court ruling
MAR 14, 2012
By  AOSTERLAND
The United States Court of Appeals for the 7th Circuit denied a request by Merrill Lynch Pierce Fenner & Smith Inc. to rehear arguments on a discrimination case originally filed by African- American financial advisers in 2005. Earlier this year, the court granted class action status to the lawsuit filed by George McReynolds and 15 other plaintiffs. The suit claims that African-American advisers were victims of systematic discrimination at Merrill and received smaller incomes and bonuses because of it. The class could include up to 700 advisers and trainees who worked at the firm since 2001. “Round 7 went to the plaintiffs,” said Linda Friedman, managing partner of Stowell & Friedman Ltd and lead attorney on the case. Merrill Lynch, now owned by Bank of America, had asked the court to rehear the arguments for class action certification. Bank of America spokesman Bill Halldin said the company had no comment on the ruling. The company now has 90 days to ask the Supreme Court to review the case. It will go back to the district court on April 10 if Bank of America decides not to appeal to the Supreme Court, which heard a class action case against Walmart last June. Ms. Friedman suggested it was unlikely to take on another such case until there is a split in the lower courts on interpretation of the Walmart decision. After more than seven years, the case may now head to trial unless the parties agree to a settlement. “The Tryavon Martin situation underscores a need for a healthy debate on race in this country,” said Ms. Friedman, referring to the African American teenager recently shot by a NeighborhoodWatch volunteer in Florida. “We're proud to be contributing to the debate.”

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.