Smith Barney, Women Agree to Settlement

To settle a discrimination lawsuit filed by female workers, Smith Barney Inc. has agreed to resolve future sex-discrimination complaints through an outside mediator, establish an unlimited fund to pay winning claims and set hiring quotas. “This is the most expansive diversity program that we will see in corporate America,” plaintiff attorney Linda Friedman said at a hearing in federal court in New York. Lawyers for Smith Barney and 23 women who sued the firm presented the settlement--which includes fees for the law firm and $2.05 million to be awarded to the 23 plaintiffs--to U.S. District Judge Constance Baker Motley. As many as 20,000 current and former workers could also eventually be eligible in the settlement if the judge agrees to it and grants the case class-action status. Motley didn’t say when she would rule. Smith Barney, a unit of New York-based Travelers Group Inc., said that under the terms it would become “the most progressive employer in the securities industry.” Travelers shares closed down $1.31 at $72.19 on the New York Stock Exchange.