On March 31, 2005, a female employee of Citigroup Global Markets and its subsidiary, Smith Barney, filed a lawsuit under Title VII of the Civil Rights Act, 42 U.S.C. § 2000e et. seq., and the California Fair Employment and Housing Act, against Citigroup Global Markets Inc. in the United States District Court of the Northern District of California. The plaintiff, represented by private counsel, asked the court for injunctive and declaratory relief and damages, charging Citigroup and Smith Barney with discriminating against female financial advisors on the basis of gender with respect to business opportunities, compensation, professional support and other terms and conditions of employment. Specifically, the plaintiff claimed that Smith Barney's policies and practices had locked in and perpetuated past discrimination, caused "cumulative advantage" effects, and caused branch management to discriminate against female brokers. Furthermore, Smith Barney refused to change policies or practices that it knew to be discriminatory against women.

On November 29, 2006, the plaintiffs filed an amended complaint, better articulating their concerns and defining the putative class as all female Financial Advisors employed by Smith Barney in the United States at any time after August 30, 2003, and adding a subclass consisting of all female Financial Advisors employed by Smith Barney in California at any time after June 25, 2003.

On May 1, 2008, after a series of negotiations, the parties reached a settlement. The Northern District Court of California (Judge Phyllis J. Hamilton) approved the Class-Action Settlement on August 13, 2008.

Jenna Chai - 07/25/2010


compress summary