On August 13th, a federal court granted the final approval for a $33 million pay out by Citigroup Smith Barney to settle a class action lawsuit filed against them. In the lawsuit, plaintiffs allege that Smith Barney discriminated against its female Financial Advisers by not paying full compensation and overlooking potential business opportunities with them.
The $33 million will be distributed by a claims administrator who will determine how much is to be paid out to each member of the lawsuit. Employees who were working at the company between August 24, 2003 and March 1, 2008 are eligible to file, and records show that over 1,285 employees so far have filed claims. An independent Diversity Monitor and an Industrial Psychologist will also be assigned, as per part of the settlement, to oversee Smith Barney to ensure that policies including partnership arrangements and branch manager promotions are equally applied to their male and female staff.
Renee Fassbender-Amochae, one of the lead plaintiffs, noted “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” while Kelly M. Dermody, a co-lead class council added “this settlement not only provides serious monetary benefits for all class members, but also real, institutional improvements for female brokers at the company.”
The final settlement came as a result of intense negotiations that were mediated by an Atlanta GA attorney.