Millions of dollars are set to be distributed among eligible Black financial advisors as part of a settlement reached by SunTrust Investment Services, now part of Truist Bank, to resolve allegations of systemic race discrimination. The settlement, totaling $1.4 million, stems from a lawsuit accusing the financial institution of paying Black financial advisors less than their white counterparts and limiting their advancement opportunities.
The lawsuit, filed by employees of SunTrust, claimed that Black financial advisors were disproportionately assigned to bank locations serving primarily Black clients, which resulted in less lucrative opportunities for them. Despite the settlement, SunTrust and Truist Bank deny any wrongdoing in the case.
To qualify for compensation, individuals must have been employed by SunTrust Investment Services as financial advisors between June 24, 2014, and February 17, 2021, and must have self-identified as Black or African American to SunTrust. Payments will start at $25,000 for those who submit a valid claim form, with individual amounts to be determined based on work history, distress statements, and financial losses. Claimants will also have the opportunity to explain their claims during a one-hour session with a court-appointed neutral party.
This settlement is not the first time a part of SunTrust Bank’s operations has faced discrimination claims. In 2012, SunTrust Mortgage paid over $21 million to settle a Department of Justice lawsuit alleging racial discrimination in mortgage fees. This previous case was referenced in the employment discrimination lawsuit, highlighting a pattern of discriminatory practices within the company.
SunTrust is among several companies facing discrimination lawsuits in recent years, including Vee Pak, a beauty manufacturer, and Apple. These settlements underscore the ongoing efforts to address workplace discrimination and ensure fair treatment for all employees.
In conclusion, the SunTrust settlement represents a significant step towards rectifying past injustices and providing financial compensation to those affected by discrimination within the financial services industry.