Court Grants Final Approval of $33 Million Gender Class Action Settlement With Smith Barney
SOURCE:
Mehri & Skalet, PLLC
2008-08-13 13:24:00
SAN FRANCISCO, CA–(EMWNews – August 13, 2008) – Professional women across America won a
major employment victory today when a federal court ruled that they had
been discriminated against by the investment house that employed them, and
awarded the women groundbreaking financial compensation in a sweeping
settlement.
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
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