Court Grants Final Approval to $33 Million Gender Class Action Settlement with Smith Barney
San Francisco, CA (August 13, 2008) – Professional women across America won a major employment victory today against the investment house when a federal court approved a settlement that awards them groundbreaking financial compensation and sweeping injunctive relief.
Today, a federal court granted final approval of a settlement of over $33 million with Citigroup Global Markets, Inc. d/b/a Smith Barney, on behalf of all women employed as Financial Advisors in (i) the United States branches of Smith Barney's retail brokerage division at any time from August 24, 2003 through March 1, 2008 or (ii) the California branches of Smith Barney's retail brokerage division at any time from June 25, 2003 through March 1, 2008. Plaintiffs alleged that Smith Barney discriminated against female Financial Advisors in compensation and business opportunities.
The parties entered into a four-year settlement agreement that received preliminary Court approval on April 30, 2008. It includes comprehensive injunctive relief regarding compensation, account distribution policies, partnership arrangements, branch manager promotions, retention, diversity training, and complaint processing, among other things. The settlement calls for the appointment of an independent Diversity Monitor and an independent Industrial Psychologist to effectuate the terms of the Agreement.
In addition, the settlement establishes a class monetary fund of $33 million, plus interest as of December 15, 2007. A Claims Administrator is expected to determine the allocation of monies among class members. Over 1,285 class members filed claim forms. No class members objected to the settlement.
"As a woman who is committed to a career in the financial services industry, I am proud to see the changes this settlement has created for other women at the company," said Renee Fassbender-Amochaev, one of the lead plaintiffs.
Cyrus Mehri of Mehri & Skalet, PLLC, Co-Lead Counsel for the class, explained, "We are delighted that over fifty percent of the class members filed claim forms for monetary relief so far."
"This settlement not only provides serious monetary benefits for all class members, but also real, institutional improvements for female brokers at the company," said Kelly M. Dermody, a partner at Lieff Cabraser Heimann & Bernstein, LLP and Co-Lead Class Counsel.
Adam Klein of Outten & Golden, LLP stated, "We are pleased that the Court approved the settlement."
The settlement was the result of intensive negotiations supervised by experienced neutral mediator Hunter Hughes, Esq., of Atlanta, Georgia.
The law firms representing plaintiffs are Lieff Cabraser Heimann & Bernstein, LLP, Mehri & Skalet, PLLC, Outten & Golden, LLP, and Altshuler Berzon, LLP.
Plaintiffs' Lead Counsel:
Kelly M. Dermody
Lieff Cabraser Heimann & Bernstein, LLP
(415) 956-1000
Cyrus Mehri
Mehri & Skalet, PLLC
(202) 822-5100
Adam T. Klein
Outten & Golden, LLP
(212) 245-1000
About the Law Firms
Plaintiffs are being represented by three law firms: the national class action firm Lieff Cabraser Heimann & Bernstein, LLP of San Francisco, New York and Nashville; the plaintiffs' civil rights firm Mehri & Skalet, PLLC of Washington, DC; and the plaintiffs' employment firm Outten & Golden LLP of New York, New York and Stamford, Connecticut.
Lieff Cabraser Heimann & Bernstein, LLP is a fifty-plus attorney firm with offices in San Francisco, New York and Nashville. Lieff Cabraser has represented plaintiffs in a wide variety of class action litigation, including employment discrimination and civil rights, wage and hour, and pension benefits litigation. Since 1992, the firm has litigated over 20 separate cases in which jury verdicts or settlements of $100 million or more were reached, including more than 10 cases valued at $1 billion or more each. More information on the firm can be found at www.lieffcabraser.com.
Mehri & Skalet, PLLC specializes in representing workers and consumers in class actions around the country. Lawyers at M&S settled two of the largest race discrimination employment class actions in history: Texaco Inc. which settled for $176 million in 1997 and The Coca-Cola Company which settled for $192 million in 2001. The firm also served as a catalyst for unprecedented reforms in hiring practices adopted by the National Football League in recent years. More information about the firm can be found at www.findjustice.com.
Outten & Golden LLP represents plaintiffs in a variety of employment law matters, including discrimination cases, wage and hour violations, and contract negotiations. The firm handles class actions, such as the gender discrimination lawsuit against Metlife that settled in 2003, as well as individual litigation. Outten & Golden represented Allison Schieffelin in the sex discrimination suit prosecuted with the EEOC against Morgan Stanley that recently resulted in a $54 million settlement, and has handled gender discrimination claims against every major Wall Street firm. More information on the firm can be found at www.outtengolden.com.
About NCWO/Women on Wall Street Project
The National Council of Women's Organizations (NCWO) has over two hundred member organizations including the American Association of University Women, Business & Professional Women/USA, the Institute for Women’s Policy Research, the League of Women Voters, the National Association for Female Executives, National Committee on Pay Equity, and the National Women’s Law Center. Collectively, NCWO represents 10 million women nationwide. For more information about NCWO’s Women on Wall Street Project, please call (202) 293-4505.
