Morgan Stanley agrees to settle gender bias suit

NEW YORK (Reuters) - Morgan Stanley agreed to settle claims in a lawsuit that alleged the brokerage discriminated against thousands of female financial advisers by paying them less than male colleagues, according to court filings.

The Wall Street firm and lead plaintiffs last month reached a settlement and signed a memorandum of understanding, according to a status report filed in U.S. District Court in Washington on February 26.

Six former Morgan Stanley female brokers last June filed a suit that is now estimated to have more than 3,000 claimants who worked at the brokerage from August 5, 2003, to the present. A formal settlement and request for preliminary approval will be filed in court in four to six weeks, the status report said.

Cyrus Mehri, a plaintiff lawyer in the suit, declined to elaborate on the terms of settlement on Friday. Morgan Stanley spokesman James Wiggins confirmed the settlement, but declined to comment.

The suit complained that Morgan Stanley discriminated against female brokers by offering more favorable training and mentoring as well as more lucrative accounts and promotions to men. Some plaintiffs said they were fired based on their gender during a August 2005 purge of 1,000 brokers.

Morgan Stanley said at the time it was cutting its lowest-producing brokers.

Plaintiffs have been in talks with the brokerage since April 2005 to pursue a settlement and to seek workplace reforms. The suit seeks unspecified monetary damages.