JPMorgan Settles Discrimination Lawsuit from Black Advisers with $24 Mln Payment

JPMorgan Chase & Co. (JPM) reached a settlement with financial advisers who claimed they were poorly treated because they are black, agreeing to pay a total of $24 million instead of taking the case to court, Bloomberg reported Tuesday, citing Aug. 31 filings.

Six current and former JPMorgan employees filed what they asked to be a class action, on allegations the largest U.S. bank discriminates against black employees. The lawsuit claims JPMorgan sent white advisers to wealthier places, while black advisers were sent to less lucrative branches and were denied opportunities.

JPMorgan agreed to pay $19.5 million to the members of the class, eliminating the need for litigation. It also will place $4.5 million into a fund that will support recruitment, bias training, a review of branch assignments, and a coaching program for black advisers. The move will allow JPMorgan to continue its focus on creating “a diverse and inclusive environment,” said spokesman Tom Kelly.

JPMorgan denied any form of wrongdoing in the settlement.