Merrill Lynch Engages in Workplace Race, Sex Bias, Suit Says (1)

Merrill Lynch was hit with a proposed class action claiming it engages in race and sex bias in its workplace succession planning, account distribution, teaming, and compensation, despite a past settlement over the same issues.

The complaint against Merrill and its parent company Bank of America was filed Nov. 8 in the US District Court for the Southern District of New York.

The lead plaintiffs are Linda Davila, a Black woman and Merrill senior vice president with 45 years at the company; and Cathy Bender, a Black woman and also a senior vice president, with 36 years at the company.

They’re seeking to represent a class that includes all Black financial advisors who are or were employed by Merrill Lynch beginning January 18, 2023, excluding some members who were part of a separate class action, and a subclass of female financial advisers who are or were employed by Merrill in New York from January 18, 2023, to present.

The suit says that Merrill is violating a past settlement agreement by imposing, on Nov. 8, a mandatory arbitration and class action waiver policy to some employees, including Davila.

A 2013 resolution to a prior discrimination suit, McReynolds v. Merrill Lynch, included the stipulation that Merrill wouldn’t require arbitration of employment discrimination claims, according to the complaint.

“This surprise move is a devastating repudiation of the McReynolds settlement’s process for reform and conciliation and a slap in the face to people like Davila and Bender who have worked tirelessly to reform Merrill Lynch from within instead of filing more litigation,” the complaint says.

Despite the earlier settlement, Merrill is still maintaining workplace practices for White men to form teams with White men and distribute accounts from White men to White men, the suit says. As a result, women and Blacks remain underrepresented in Merrill’s employee population and continue to earn less than their White male counterparts, the complaint says. They also “regularly endure discrimination and retaliation as a result of Merrill Lynch’s discriminatory culture, practices, and policies,” the complaint says.

“We disagree with the allegations and will vigorously defend ourselves in this matter,” a Bank of America spokesman said. “We have a longstanding commitment to increase the diversity of our financial advisors and provide support to help each advisor succeed.”

The complaint brings violation of federal and New York state race discrimination laws, and New York state sex discrimination laws. The plaintiffs are seeking damages, diversity initiatives to remedy the discrimination, and an elimination of mandatory arbitration and class-action waivers.

Stowell & Friedman Ltd. represents the lead plaintiffs and proposed class.

The case is Davila v. Bank of Am. Corp., S.D.N.Y., No. 1:24-cv-08526, complaint filed 11/8/24.