University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name Augst-Johnson v. Morgan Stanley & Co. EE-DC-0033
Docket / Court 1:06-cv-01142 (RWR) ( D.D.C. )
State/Territory District of Columbia
Case Type(s) Equal Employment
Special Collection IWPR/Wage Project Consent Decree Study
Private Employment Class Actions
Case Summary
Female financial advisers employed by Morgan Stanley, a financial services firm, filed their complaint in the U.S. District Court for the District of Columbia under Title VII and the Federal Age Discrimination in Employment Act, alleging that Morgan Stanley had a systemic pattern and practice of ... read more >
Female financial advisers employed by Morgan Stanley, a financial services firm, filed their complaint in the U.S. District Court for the District of Columbia under Title VII and the Federal Age Discrimination in Employment Act, alleging that Morgan Stanley had a systemic pattern and practice of discriminating against female employees in compensation, promotions, and other areas.

The Court


Specifically, plaintiffs alleged that Morgan Stanley discriminated against its female financial advisors in promotions, compensation, business, referrals, training, mentoring, and "partnership" agreements, among other areas. The complaint sought to certify a class of "[a]ll women employed by Morgan Stanley as financial advisers at any time between August 5, 2003 and the present." The complaint sought: a declaratory judgment; front pay, benefits, back pay, compensatory and puntive damages; liquidated damages for the ADEA claim to the individual plaintiffs; injunctive relief forcing the defendant to cease discrimination and develop new policies; and attorneys' fees, experts' fees, and costs.

On October 16, 2007, the District Court (Judge Richard W. Roberts) certified the class, approved a settlement agreement, and approved attorneys' fees and costs. The Court retained jurisdiction over administration of the settlement. The settlement applied to a class of all women employed as Morgan Stanley financial advisors or trainees employed from August 2003 to June 2007. The agreement has a term of five years and required the defendant to pay $46m; $32.5m of which was allocated for class members' claims and $13.5m for attorneys' fees, costs and monitoring and compliance. A special master was appointed to determine class members' awards based on their contributions to the defendant's business, the discrimination they faced, and other factors according to a formula detailed in the settlement.

The injunctive relief included: distributing an anti-harassment policy to all employees; posting positions on an internal job bank; establishing objective promotion and hiring criteria; implementing diveristy training; revising the "power ranking" system that ranks financial advisors' production; changing acocunt distrubiton and referral policies; implemening a complaint process; and other changes. The parties also agreed to appoint a diversity monitor who would report semi-annually to class counsel and to appoint industrial psychologists to develop programs to recruit and promote more women.

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Related Case

Morgan Stanley employees in California also filed a gender discrimination class action on the same day that the Augst-Johnson action was filed. That case appeared on the U.S. District Court for the Northern District of California's docket as 3:06-cv-03903-TEH. It appears in the Clearinghouse database as EE-CA-0334. However, the Northern District stayed that gender discrimination claims pending the outcome of Augst-Johnson. In the end, the Jaffe settlement dispensed only with claims of racial discrimination.

Eric Weiler - 07/03/2010


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Issues and Causes of Action
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Issues
Affected Gender
Female
Content of Injunction
Comply with advertising/recruiting requirements
Develop anti-discrimination policy
Discrimination Prohibition
Follow recruitment, hiring, or promotion protocols
Goals and Timekeeping
Implement complaint/dispute resolution process
Monitor/Master
Monitoring
Other requirements regarding hiring, promotion, retention
Post/Distribute Notice of Rights / EE Law
Promotion
Provide antidiscrimination training
Recordkeeping
Reporting
Utilize objective hiring/promotion criteria
Utilize objective job description
Discrimination-area
Other Conditions of Employment (including assignment, transfer, hours, working conditions, etc)
Pay / Benefits
Promotion
Training
Discrimination-basis
Age discrimination
Sex discrimination
General
Disparate Treatment
Pattern or Practice
Plaintiff Type
Private Plaintiff
Causes of Action Title VII (including PDA), 42 U.S.C. § 2000e
Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621 et seq.
Defendant(s) Morgan Stanley
Morgan Stanley & Company
Plaintiff Description All women employed by Morgan Stanley as financial advisors at any time between August 5, 2003 and June 22, 2006.
Indexed Lawyer Organizations None on record
Class action status sought Yes
Class action status granted Yes
Prevailing Party Plaintiff
Public Int. Lawyer No
Nature of Relief Damages
Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2008 - 2013
Case Closing Year 2009
Case Ongoing No
Case Listing EE-CA-0334 : Jaffe v. Morgan Stanley DW, Inc. (N.D. Cal.)
Additional Resources
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Case Studies Megacases, Diversity, and the Elusive Goal of Workplace Reform
Written: Mar. 01, 2008
By: Nancy Levit (University of Missouri-Kansas City School of Law)
Citation: 49 B.C. L. Rev. 367 (2008)
[ Detail ] [ External Link ]

  Second Generation Employment Discrimination: A Structural Approach
By: Susan Sturm (Columbia Law School)
Citation: 101 Colum. L. Rev. 458 (2001)
[ Detail ] [ External Link ]

Docket(s)
1:06-cv-01142 (D.D.C.) 06/26/2009
EE-DC-0033-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 06/22/2006 (2006 WL 2304554)
EE-DC-0033-0005.pdf | WESTLAW | Detail
Document Source: Westlaw
Order Granting Joint Emergency Application For An Injunction 04/06/2007 (D.D.C.)
EE-DC-0033-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Settlement Agreement 04/23/2007
EE-DC-0033-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Amended Complaint 04/24/2007
EE-DC-0033-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Final Order Certifying Class, Approving Settlement Agreement, Approving Award Of Attorneys Fees And Costs, And Dismissing Action Subject To The Court's Continuing Jurisdiction 10/26/2007 (D.D.C.)
EE-DC-0033-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Memorandum Order [Granting Class Member's Motion To Opt Out Of Class] 01/02/2008 (247 F.R.D. 25) (D.D.C.)
EE-DC-0033-0006.pdf | WESTLAW| LEXIS | Detail
Document Source: Google Scholar
Judges Roberts, Richard W. (D.D.C.)
EE-DC-0033-0002 | EE-DC-0033-0003 | EE-DC-0033-0004 | EE-DC-0033-0006 | EE-DC-0033-9000
Monitors/Masters None on record
Plaintiff's Lawyers Beard, Kelly (Georgia)
EE-DC-0033-0001 | EE-DC-0033-9000
Bornstein, Lisa M. (District of Columbia)
EE-DC-0033-0005
Farrell, Sandi (District of Columbia)
EE-DC-0033-0005
Mehri, Cyrus (District of Columbia)
EE-DC-0033-0001 | EE-DC-0033-0003 | EE-DC-0033-0005 | EE-DC-0033-0006 | EE-DC-0033-9000
Moody, Christopher M. (New Mexico)
EE-DC-0033-0005 | EE-DC-0033-0006 | EE-DC-0033-9000
Skalet, Steven A. (District of Columbia)
EE-DC-0033-0005
Sprenger, Steve M (District of Columbia)
EE-DC-0033-0001 | EE-DC-0033-0003 | EE-DC-0033-0005 | EE-DC-0033-0006 | EE-DC-0033-9000
Thompson, Mara R (Minnesota)
EE-DC-0033-0001 | EE-DC-0033-0003 | EE-DC-0033-0005 | EE-DC-0033-0006 | EE-DC-0033-9000
Warner, Whitney (New Mexico)
EE-DC-0033-0005 | EE-DC-0033-0006 | EE-DC-0033-9000
Defendant's Lawyers Dichter, Mark S. (Pennsylvania)
EE-DC-0033-0003 | EE-DC-0033-9000
Speights, Grace E (District of Columbia)
EE-DC-0033-0003 | EE-DC-0033-0006 | EE-DC-0033-9000
Turnbull, Kenneth J. (New York)
EE-DC-0033-9000
Other Lawyers None on record

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