Civil rights attorney Ben Crump last week filed a lawsuit on behalf of Anthony Fletcher against Morgan Stanley & Co., one of the world’s largest financial service firms, alleging a long-standing pattern of systematic racial discrimination.is suing Morgan Stanley & Co, one of the world’s largest financial services firms, alleging a longstanding pattern of systemic racial discrimination.
Fletcher, a Black recruiter for the financial and investment giant was contracted to diversify the financial giant’s firm from 2015 to March of 2022. But, Fletcher contends that only 16 of the 200 “highly qualified diverse candidates” he sourced were hired for management roles.
Fletcher and Crump are accusing Morgan Stanley of discriminating against “diverse” hires by putting them into low-paying roles at the firm and paying them less than their White counterparts.
The injured recruiter is also charging that Morgan Stanley cut his compensation to “below the industry standard of 33.33 percent to 20 percent.”
When Fletcher reported the discrimination he and his candidates faced, his contract was terminated and he was replaced by a White candidate who took over his responsibilities.
Crump said that the financial firm had a long-standing history of intentional discrimination against Black employees that has led to their underrepresentation in financial advisor, management and executive roles. According to the civil rights leaders, only about 1 percent of 18,000 tenured Morgan Stanley Financial advisors are Black.
“The pattern is clear that Morgan Stanley has a deep and wide institutional bias against Black people,” the 53-year-old attorney said in a statement.
“We have amassed compelling evidence that Morgan Stanley is reluctant to hire Black employees; it doesn’t believe people want Black financial advisors, and it doesn’t think Black people have money to invest,” Crump added.
Data revealed that the controversial brokerage firm paid white financial advisors 30 percent more in comparison to Black advisors. There were also cases where Black financial advisors were segregated and excluded from lucrative partnerships and financial opportunities while employed with the company.
Fletcher is seeking compensatory and punitive damages. He also wants the firm to address and apologize for its discriminatory practices to create a more equitable work environment.
A Morgan Stanley spokesperson denied the allegations, saying, “We categorically reject the allegations of this complaint which is based on a fee dispute with an external recruiter whose contract was terminated,” she wrote. “Morgan Stanley remains steadfast in our commitment to build a workforce that is inclusive and diverse.”
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