PRESS
RELEASE |
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Race and Color Class Action Settlement with
Morgan Stanley Announced |
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| San Francisco, CA (August 2,
2007) -- Today, the law firms of Lieff Cabraser Heimann & Bernstein,
LLP, Outten & Golden LLP, and Altshuler Berzon LLP
announced a settlement in principle with Morgan Stanley & Co.
Incorporated f/k/a Morgan Stanley DW Inc., on behalf of
approximately 1,200 African-American and Latino Financial
Advisors and Registered Financial Advisor Trainees employed
at Morgan Stanley at any time since October 12, 2002. This
lawsuit challenged inequities in opportunities for African
Americans and Latinos in the distribution of accounts and
other business opportunities. |
| The parties entered into a five year settlement
agreement that is subject to Court approval. It includes
comprehensive injunctive relief regarding recruiting and
hiring, account distribution policies, partnership arrangements,
promotions, retention, diversity training, and complaint
processing, among other things. The settlement also provides
that an independent Diversity Monitor will be appointed
to effectuate the terms of the Agreement. In addition,
the settlement establishes a significant class monetary
settlement fund. A Special Master is expected to determine
the allocation of monies among the class. The terms of
the settlement are presently confidential and will be revealed
in a public filing with Federal Judge Thelton Henderson
of San Francisco in the near future. |
| "This settlement commits Morgan Stanley
to implementing policies and programs to ensure that African
American and Latino Financial Advisors are able to compete
and thrive on the same terms as their white colleagues.
We commend Morgan Stanley for its decision to adopt the
positive and innovative changes in the agreement," said Kelly M. Dermody, a partner
at Lieff Cabraser Heimann & Bernstein,
LLP, Co-Lead Class Counsel. |
| Co-Lead Class Counsel Adam Klein stated, "By
agreeing to this ground breaking agreement, Morgan Stanley
has demonstrated its strong commitment to being a market
leader on Wall Street." |
| Co-Lead Class Counsel Jim Finberg stated, "The
injunctive relief in this agreement will be a win/win,
because it will enhance employment opportunities for African
Americans and Latinos, while enabling Morgan Stanley to
benefit from the skills and talents of a diverse FA workforce." |
| In a statement issued by Morgan Stanley,
the Firm stated: "Morgan Stanley is committed to the
success of our Financial Advisors, regardless of race or
color, and we view this settlement as a positive step forward." |
| The settlement was the result
of intensive negotiations supervised by experienced neutral
mediator Hunter Hughes, Esq., of Atlanta, Georgia. |
| Reporters can click
here to read a copy
of the complaint [pdf format]. |
| Attorney Contact Information |
| Plaintiffs’ Class Counsel: |
Kelly M. Dermody
Lieff Cabraser Heimann & Bernstein, LLP
(415) 956-1000
Adam T. Klein
Outten & Golden, LLP
(212) 245-1000
James M. Finberg
Altshuler Berzon LLP
(415) 421-7151
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| Morgan Stanley: |
James Wiggins
Morgan Stanley Corporate Communications
(914) 225-6161 |
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| Notice: Lieff
Cabraser attorneys provide legal advice and practice law for clients in
federal district courts throughout the United States and in state courts
where we are licensed to practice. In states in which our lawyers are not
licensed to practice, we have affiliations with local attorneys who serve
as co-counsel with our firm. Please read our disclaimer. |
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Copyright © 2007 Lieff Cabraser Heimann & Bernstein, LLP |
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