Sprenger & Lang Announces Agreement with American Express Financial Advisors for $31 Million...

Business Editors

WASHINGTON--(BUSINESS WIRE)--Feb. 21, 2002

A $31 million dollar settlement of a nationwide gender and age discrimination class action case against American Express Financial Advisors, Inc., a subsidiary of American Express, was submitted for preliminary approval on February 19, 2002, to United States District Court Judge Henry Kennedy.

The law firms of Sprenger & Lang and Miller-O'Brien represent the plaintiff classes. The parties agreed to a comprehensive settlement before the case was filed with the court.

The settlement could involve as many as 4,000 female financial advisors. Larry Schaefer, a partner at Sprenger & Lang, stated, "This settlement is a milestone achievement, both because of its scope and when it was achieved." Bill O'Brien, a partner at Miller-O'Brien, added: "This settlement compensates women for the harm caused by past discrimination, and will level the playing field going forward for all financial advisors."

The case began in October 1999, when Shelley Kosen, Lois Wisocky, and Meg Roy filed charges with the Equal Employment Opportunity Commission alleging sex and age discrimination, as well as unequal pay.

The women claimed the company created a glass ceiling for women by handing lucrative accounts and steering client leads to male advisors, and by engaging in preferential training, mentoring, and promotion of men. Fourteen women, from seven different states, later joined the action by filing additional charges alleging the same practices.

Lawyers representing the women spent almost two years analyzing the evidence and the parties spent almost a year negotiating over the terms of the settlement.

The settlement was filed on January 18, 2002 in federal district court in Washington, DC.

In addition to the $31 million, which will be distributed to eligible class members and pay attorneys' fees and costs, American Express Financial Advisors has agreed to enhance its operations nationally, including making changes to its account and lead distribution process, its internal complaint procedures, and its promotion process.

The company will also create a Field Diversity Officer position that will implement and monitor these changes internally at the company.

According to Susan Stokes, also representing the plaintiffs, "This settlement is a tremendous achievement. It was made possible by the determination of a few women who acted on their convictions."

"The company should be commended for focusing its energy and resources on eradicating barriers and on enhancing opportunities for women financial advisors rather than on litigation," said O'Brien. Schaefer added, "This result is good for everybody - women advisors, the company, and clients."

The terms of the settlement, both monetary and workplace relief items, are set forth in a Consent Decree which will last four years. The Decree must be finally approved and adopted by the Court.

Note: The case is assigned in U.S. District Court, District of Columbia - Civil Case No. 1-02-00082-HHK. For more information about the case, please visit www.amexgendercase.com.

ABOUT SPRENGER & LANG

Sprenger & Lang, with offices in Washington, D.C. and Minneapolis, Minnesota, primarily represents employees and other aggrieved individuals in class action and other complex multi-plaintiff litigation across the nation. The firm has obtained some of the country's largest gender, age, and race discrimination judgments, including in cases against companies such as CBS, Cargill, Northwest Airlines, First Union, Amtrak and Ceridian Corporation. For more information about the firm, please visit http://www.sprengerlang.com/.

ABOUT MILLER-OBRIEN, PLLP

Miller-O'Brien is a Twin Cities law firm specializing in employee rights, civil rights, and labor law. The firm's attorneys have substantial trial experience in cases involving discrimination based on age, sex, disability and race. They have been selected as among the nation's best.

The firm's attorneys are listed in publications such as The Best Lawyers in America, The Guide To Leading American Attorneys, Minnesota Law and Politics (Super Lawyer Issue and Rising Stars Issue), Minneapolis/St. Paul Magazine (Top Lawyer Issue) and Twin Cities Business Monthly. For more information about Miller-O'Brien, please visit http://www.miller-obrien.com/.