Lawsuit Alleges Discrimination at Merrill Lynch

In 2013, the $160 million settlement agreement in McReynolds v. Merrill Lynch was supposed to be a landmark in the fight against racial discrimination at that giant financial institution and others like it. Unfortunately, a recent lawsuit alleges that bias still affects hiring and promotion decisions at Merrill, despite the firm’s agreement to improve opportunities for Black employees. In fact, even workers with decades of service to the company claim that they were mistreated. 

Two veteran financial advisors have filed a proposed class-action lawsuit against the brokerage and its parent company, Bank of America, alleging systemic discrimination. Linda G. Davila, a 44-year Merrill veteran in New York, and Cathy L. Bender, a 36-year Merrill advisor in Nashville, accuse their employer of perpetuating discriminatory practices in succession planning, teaming and account distribution.

The advisors claim Merrill Lynch's policies favor white male colleagues, particularly in opportunities to join lucrative teams and access valuable leads. Davila noted that her Park Avenue branch, which houses 150 advisors, includes only three Black employees within that group. Bender says the number of African-American advisors in her Nashville office has not increased since she joined the firm 36 years ago. 

Though they are from different parts of the country, both women allege they were excluded from the same professional opportunities offered to their white male peers. These disparities, they argue, severely limited their ability to build and maintain competitive books of business over the years. 

Moreover, the lawsuit also challenges the brokerage's mandatory arbitration policy, recently instituted by Bank of America. The plaintiffs claim that compelling discrimination complaints to be arbitrated undermines the company’s promises in the McReynolds settlement, which also alleged bias in account distribution and other workplace practices.  

This lawsuit underscores persistent challenges faced by Black professionals and women in corporate America. Practices such as unfair teaming structures and inequitable lead distribution can marginalize underrepresented groups and reinforce systemic inequities. Even when a company vows to make improvements, how effective are these initiatives if foundational issues, such as equitable account distribution, remain unaddressed?

If you or someone you know has faced workplace discrimination, it’s essential to seek experienced legal counsel to protect your rights. Contact Kardell Law Group firm to learn how we can help you fight for justice and advocate for fair treatment in your career.