Merrill advisers win round in court

APR 01, 2012
The 7th U.S. Circuit Court of Appeals has denied a request by Merrill Lynch to rehear arguments on a discrimination case originally filed by black financial advisers at Merrill 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 black 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 plaintiff's attorney on the case. Merrill Lynch, now owned by Bank of America Corp., had asked the court to rehear the arguments for class action certification. BofA spokesman Bill Halldin said that the company has no comment on the ruling. The company had 90 days as of last week to ask the Supreme Court to review the case. It will go back to the district court April 10 if Bank of America decides before then not to appeal to the Supreme Court, which heard a class action case against Wal-Mart Stores Inc. last June. Ms. Friedman suggested that the top court is unlikely to take on another such case until there is a split in the lower courts on interpretation of the Wal-Mart decision. After more than seven years, the case may now head to trial unless the parties agree to a settlement. “The Trayvon Martin situation underscores a need for a healthy debate on race in this country,” said Ms. Friedman, referring to the black teenager who was fatally shot in February by a neighborhood watch volunteer in Florida. “We're proud to be contributing to the debate.” [email protected]

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