Women prevail in Smith Barney suit

A federal judge has approved Citigroup Inc.'s $33 million class action settlement with female brokers.
AUG 14, 2008
A federal judge has approved Citigroup Inc.'s $33 million class action settlement with female brokers in its Smith Barney brokerage division. Judge Phyllis Hamilton of the U.S. District Court in San Francisco approved the settlement at a hearing Wednesday; she granted preliminary approval in April (InvestmentNews, April 4) . The class action, filed in 2005, involves 1,285 female brokers who accused Smith Barney of passing over women when assigning large accounts, promotions and raises, and of depriving women of the same training and sales support that their male counterparts receive. "This settlement not only provides serious monetary benefits for all class members, but also real, institutional improvements for female brokers at the company," Kelly M. Dermody, a partner and co-lead class counsel at Lieff Cabraser Heimann & Bernstein LLP of San Francisco, said in a statement. Under the terms of the settlement, New York-based Citigroup will change its account distribution policies for partnership arrangements, branch manager promotions, retention and diversity training. Additionally, the settlement calls for the appointment of an independent diversity monitor and an industrial psychologist. "We're pleased to have this matter resolved," said Alexander I. Samuelson, a spokesman for Smith Barney.

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.