Morgan Stanley will pay a total of $40 million to 67 women who filed valid claims in a settlement of a lawsuit accusing the company Morgan Stanley of sex discrimination, according to the
U.S. Equal Employment Opportunity Commission.
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Download NowThe settlement, which was agreed to last year, was structured so that Allison Schieffelin--who initiated
the EEOC's investigation by filing a charge of discrimination in 1998--was paid
$12 million; $2 million was to be spent by Morgan Stanley on new diversity initiatives
in its the Institutional Equity Division; and $40 million was earmarked for
distribution to eligible claimants via a claims process to be administered by
former federal Judge Abner Mikva. Sixty-seven women came forward to participate
in the claims process.
In settling the lawsuit, Morgan Stanley denied any wrongdoing.
The EEOC's lawsuit alleged that Morgan Stanley had engaged in a pattern or
practice of sex discrimination since 1995 against Allison Schieffelin and a
class of other women, all employed in Morgan Stanley's Institutional Equity
Division (IED). The charges included claims that Morgan Stanley regularly excluded
women from work-related outings, paid women less than male peers, and denied
the women promotions.
In the event that the Mikva did not distribute the entire $40 million claim
fund, the settlement allowed for any remaining money to be used to fund a scholarship
program dedicated to women pursuing financial careers. As Mikva awarded the
entire $40 million, plus accrued interest up to June 1, 2005, only a small amount
of money will be set aside for this cause.