Merrill Lynch to Settle Some Bias Claims

Merrill Lynch & Co. said more than 300 of 904 claims filed against the securities firm by women in a sex discrimination suit may have some merit. “‘We are prepared to begin settlement discussions or to seek additional information on about one-third” of the claims, John Steffens, head of the brokerage unit, said in a memo to the firm’s 14,800 U.S. brokers. The class-action suit stemmed from a complaint brought by eight female brokers in 1997 saying they were discriminated against when departing brokers’ accounts were reassigned. Some said they were penalized for taking maternity leave and overlooked for promotions, curbing their earnings potential. A judge settled the suit in September, allowing 2,900 women to file discrimination claims. About 31% of those eligible did file claims. The closely watched case has helped change the way discrimination cases are handled on Wall Street. For nearly two decades, securities firms had forced employees to settle disputes through industry-sponsored arbitration. “We are pleased to see that [Merrill] is beginning to acknowledge that there’s a problem that needs to be addressed,” said Linda Friedman, a partner with the plaintiffs’ Chicago law firm, Stowell & Friedman. Merrill shares rose $2.31 to close at $72.25 on the New York Stock Exchange.