ST. LOUIS — Edward Jones has agreed to pay $34 million to settle a 2018 racial discrimination lawsuit on behalf of current and former Black financial advisers.
The settlement agreement includes commitments regarding equitable hiring, training, promotional practices and policies to better support financial advisers of color. "The settlement includes measures Edward Jones is taking to report diversity progress to its leadership team, create a financial advisor council with diverse representation and reduce training cost obligations," the brokerage said.
"We reached this agreement because it is in the best interest of Edward Jones and allows our firm to move forward," an Edward Jones spokesperson said in an email to the Business Journal.
The suit originally was filed in 2018 by Wayne Bland, a Black financial adviser who left Edward Jones in 2016 and was represented by Stowell & Friedman, a Chicago law firm that has negotiated class-action settlements on similar claims against other firms, including Merrill Lynch and Wells Fargo.
Bland's suit alleged that the brokerage discriminated against Black advisers and trainees by denying them opportunities to participate in programs to develop their careers and client rosters. In addition, the suit alleged Edward Jones denied them participation in a mentor-assigning program and another program through which managers transfer client assets from retiring financial advisers to newcomers, Stowell & Friedman said at the time.
The class includes Black financial advisers employed by Edward Jones at any time between May 24, 2014, and Dec. 31, 2020, according to settlement documents filed with the federal court in Chicago.
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