Allison Schieffelin, a former Morgan Stanley bond seller, enters the U.S. courthouse in New York, July 12, 2004.
Former Morgan Stanley bond seller Allison Schieffelin enters the U.S. courthouse in New York, where a settlement was announced.
The Morgan Stanley investment bank agrees to pay $54 million to end a sex bias lawsuit brought by the Equal Employment Opportunity Commission. The firm was accused of a pattern of discrimination that denied promotions and higher salaries to women.
Announcement of the deal came just as opening statements in the case were to begin. Some of the money in the settlement will be used to fund diversity initiatives at the Wall Street brokerage.
The big winner in the suit is Allison Schieffelin, the central plaintiff in the three-year-old case, who will receive $12 million.
Some $40 million of the settlement will go into an account that is meant to provide funds to women who worked for the company since 1995. It will be supervised by a former federal judge.
Another $2 million will pay for a training program aimed at eliminating gender-based discrimination at the company. Hear NPR's Robert Siegel and NPR's Jim Zarroli.