15 African-Americans Oppose Inadequate Morgan Stanley Settlement and Ask Judge For Hearing

African-American Group objects to inadequate settlement and Morgan Stanley’s attempt to transform gender discrimination lawsuit to global ‘race and color’ settlement to release claims of African-Americans and Latinos Statement by Moore et al. v. Morgan Stanley Steering Committee Last week, we learned of the terms of a settlement reached by Morgan Stanley with one of the plaintiffs in the lawsuit Jaffe et al. v. Morgan Stanley, a gender discrimination class action transformed into a “race and color” discrimination class action of the claims of all African-American and Latino Financial Advisors and Trainees. We believe Morgan Stanley took this action to avoid addressing the issues of race discrimination that our group raised with the Firm over one year ago. We are deeply disappointed by both the programmatic and monetary relief presented in the proposed settlement. We have carefully studied the organizational changes that Morgan Stanley has proposed and feel certain that even if they are implemented, African-Americans working at the company will continue to suffer from workplace discrimination. The proposed settlement fund is grossly inadequate to compensate the victims of Morgan Stanley’s systemic race discrimination. The $16 million fund available to resolve the claims of over 1,300 African-Americans and Latinos who worked at Morgan Stanley since October of 2002 pales in comparison to the payouts by other Wall Street firms in similar discrimination cases brought by brokers, including the Cremin v. Merrill Lynch lawsuit (over $200 million recovered by class members) and Martens v. Smith Barney (over $100 million). Indeed, the settlement is a fraction of the settlements Morgan Stanley has recently made in gender discrimination cases of $46 million (Augst-Johnson v Morgan Stanley) and $54 million (Schiefflin v. Morgan Stanley). We understand that one of the two African-American named plaintiffs has decided to opt out of the settlement and not serve as a class representative. We respect her decision. As a result, the sole remaining class representative is a person who worked for Morgan Stanley for only one month during the class period, and who is not Latino. This turn of events raises serious questions about the fairness of the settlement and whether the class is adequately represented. We are also troubled by the lawsuit and settlement grouping African-Americans and Latinos into a single class, without a Latino class representative. It is naive and incorrect to simply assume that the experiences of and issues facing African-Americans and Latinos at Morgan Stanley are the same and that a member of one group can adequately represent the interests of the other. We believe that the proposed settlement’s terms and the way in which it was negotiated reveal the extent of Morgan Stanley’s disrespect and hostility towards African-Americans and Latinos, and its lack of commitment to equal opportunity. We intend to oppose the settlement and ask the Court in the Jaffe case to appear in court to address a number of our concerns, including: — At the time Morgan Stanley reached this settlement, only one of the two Jaffe plaintiffs was African-American, and the complaint did not include any class claim of race or color discrimination; — We do not believe the Jaffe plaintiffs received full and fair disclosure about our group’s existence and efforts to address racial discrimination at Morgan Stanley, which may have influenced their decision to settle; — The sole class representative in the lawsuit worked at Morgan Stanley for only about one month of the proposed class period, but seeks to represent a class from October 2002 until the present. — Although the class purports to resolve the claims of all African-Americans and Latinos, the lone class representative is not Latino, nor does it appear that Latino class members were included in settlement negotiations. We will take appropriate action to ensure that the rights of African-Americans are protected and that Morgan Stanley is held accountable for its ongoing discriminatory practices. We stand ready, willing and able to vigorously prosecute our case challenging Morgan Stanley’s systemic discrimination against African-Americans to a full and fair conclusion that will result in meaningful change at Morgan Stanley and fair compensation for those who suffered from the Firm’s discrimination. (See Moore, et al. v. Morgan Stanley complaint, Case No. 07 C 5606 (N.D. Ill.))

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