Merrill Lynch has agreed to pay $19.5 million to settle a class-action lawsuit that contends the firm systemically discriminated against its African American advisors and advisor trainees.
The suit, which dates back to July 2021, was filed on May 24 in the U.S. District Court for the Middle District of Florida by Lucinda Council, Ravynne Gilmore, Verna Maitland and Hilari Ngufor.
"We reached an agreement to resolve this matter so we could focus on initiatives to assist Black financial advisors and their clients," a spokesperson for Merrill told ThinkAdvisor Wednesday in an email.
Council and Gilmore dropped their previous case against Merrill, which was filed in 2021.
The four were formerly employed at Merrill as financial advisors, Financial Advisor Development Program trainees, and/or Financial Solutions advisors.
The suit states that they received less compensation and were promoted less frequently than their white counterparts as a result of Merrill policies and practices, including Merrill's "minimum threshold production credit requirements, lack of support, and inequitable teaming opportunities."
