Bank of America Corp (NYSE:BAC) will pay-back black advisers $160M
In 2005, an attorney who was representing some black financial advisers had filed a class-action lawsuit against Bank of America Corp (NYSE:BAC)’s Merrill Lynch unit. He told a finance website that the BAC has now agreed to settle the discrimination lawsuit.
Under this settlement, almost 12,000 class-representatives may receive a segment of a $160M payment from the bank. A judge will be reviewing this proposed settlement at the beginning of September. A bank spokesperson confirmed that this settlement was in place and that BAC was completely committed to improving opportunities for the African-American financial Advisers.
Equality not maintained
George McReynolds had filed this suit. The allegation was that Merrill Lynch had been unsuccessful in providing equal account distribution and business opportunities to black, financial-advisers in comparison to what they were providing white advisers. Reynolds is still in the employ of Merrill Lynch.
An appeals court granted this case a class-action status on the heels of the 2011 United States Supreme Court ruling in a certain discrimination case that involved female-workers at Walmart. BAC had acquired Merrill Lynch in 2009 for $33B. There are 14,000 financial-advisers in the firm. In 2012, BAC had agreed to pay $2.43B to settle a class-action suit from some investors who had claimed that it has misrepresented Merrill Lynch’s financial condition in the course of the acquisition.
In Wednesday’s trading session BAC stock rose by 0.07%. The opening price of the bank’s shares was $14.07 which touched an intraday high of $14.25 and closed at $14.12. More than 96.47million shares were traded on Wednesday and the average volume of shares traded over 30 days was 103.03. The company has a market cap of $151.69 billion.
BAC is essentially a bank-holding company as well as a financial-holding company. This financial institution serves individual customers, governments, SMB customers and corporations with a variety of risk management and financial services and products.