Class action discrimination suit looks set to go to trial after latest court ruling
The United States Court of Appeals for the 7th Circuit denied a request by Merrill Lynch Pierce Fenner & Smith Inc. to rehear arguments on a discrimination case originally filed by African- American financial advisers in 2005.
Earlier this year, the court granted class action status to the lawsuit filed by George McReynolds and 15 other plaintiffs. The suit claims that African-American advisers were victims of systematic discrimination at Merrill and received smaller incomes and bonuses because of it. The class could include up to 700 advisers and trainees who worked at the firm since 2001.
“Round 7 went to the plaintiffs,” said Linda Friedman, managing partner of Stowell & Friedman Ltd and lead attorney on the case.
Merrill Lynch, now owned by Bank of America, had asked the court to rehear the arguments for class action certification. Bank of America spokesman Bill Halldin said the company had no comment on the ruling.
The company now has 90 days to ask the Supreme Court to review the case. It will go back to the district court on April 10 if Bank of America decides not to appeal to the Supreme Court, which heard a class action case against Walmart last June. Ms. Friedman suggested it was unlikely to take on another such case until there is a split in the lower courts on interpretation of the Walmart decision.
After more than seven years, the case may now head to trial unless the parties agree to a settlement. “The Tryavon Martin situation underscores a need for a healthy debate on race in this country,” said Ms. Friedman, referring to the African American teenager recently shot by a NeighborhoodWatch volunteer in Florida. “We're proud to be contributing to the debate.”