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Morgan Stanley Was thisclose To Never Having To Respond To A Racial Discrimination Class Action Ever Again

So, so close.
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One more for old time's sake, Jim.

An ex-Morgan Stanley broker in Hawaii heard through the grapevine that her former employer, which had “constructively discharged” her two years ago, was about to quietly do away with pesky things like racial-discrimination class actions by expanding its arbitration requirements. So she decided to do her erstwhile colleagues a favor and get one in under the wire.

Kathy Frazier, who is currently a broker at UBS Financial Services in Honolulu, according to regulatory records, said in her complaint that African-Americans were underrepresented in the ranks of brokers at Morgan Stanley and were paid “substantially less” than their counterparts….

Instead of changing what Ms. Frazier referred to as “entrenched discrimination” at the company, Morgan Stanley “has sought to quietly institute mandatory arbitration and a class action waiver,” according to the complaint, which was filed on Wednesday in United States District Court in San Francisco….

In what the company calls the “expansion” of an internal dispute resolution program, court will be eliminated as an option for all workplace claims and employees will be barred from taking part in class-action lawsuits.

Former Morgan Stanley Broker Sues Over Arbitration Policy [DealBook]


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