Morgan Stanley was sued by an external recruiter who claims it discriminated against him because he is Black, shortchanging him on commissions he earned in placing diverse candidates at the bank — even as it treated them with racial bias as well.
Anthony Fletcher said in his lawsuit that the bank hired his executive search firm, which specializes in diversity, in 2015 to boost its efforts to recruit racially diverse candidates. Within a year, it had hired half a dozen African American candidates he recommended, according to the suit, filed Wednesday in federal court in Chicago.
Despite this initial success, he alleges, the Wall Street firm hired a number of his candidates without his knowledge, depriving him of commissions. When he complained, it cut his rate from 33.3%, the industry standard, to 20%, he claims. Morgan Stanley ended his contract last year, according to the suit.
Morgan Stanley said the suit had no merit.
"We categorically reject the allegations of this complaint which is based on a fee dispute with an external recruiter whose contract was terminated," the firm said in a statement. "Morgan Stanley remains steadfast in our commitment to build a workforce that is inclusive and diverse."
Among the lawyers representing Fletcher is Ben Crump, who won a $27 million settlement with Minneapolis for the family of George Floyd after a police officer murdered him in 2020, and a $12 million settlement for the family of Breonna Taylor, who was killed in Louisville, Kentucky, by police carrying out a "no knock" warrant at her home in 2020.
