Discrimination lawsuit costs Bank of America $160m

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Bank of America's Merrill Lynch unit agreed to pay $160m to settle a discrimination lawsuit filed by black financial advisers, a lawyer for the plaintiffs said.

Bloomberg News reports that the case, filed in 2005, was brought on behalf of one employee and grew to as many as 1,200 class representatives who 'persevered through some long odds in this case,' said Suzanne Bish, a lawyer for the plaintiffs.

The agreement is scheduled to be considered by a federal judge in Chicago on September 3, Bish said yesterday (Tuesday) in a phone interview.

'We are working toward a very positive resolution of a lawsuit filed in 2005 and enhancing opportunities for African-American financial advisers,' Bill Halldin, a Bank of America spokesman, said in an e-mail.

Bank of America acquired Merrill for $33bn in 2009. The bank plans to dissolve the unit as early as the fourth quarter while keeping the Merrill Lynch brand for its retail brokerage and investment bank, according to an August 2 filing.

To access the complete Bloomberg article hit the link below.

BofA Settles Black Advisers’ Bias Suit for $160 Million

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