JPMorgan Chase & Co. agreed to pay $19.5 million to a group of black financial advisers to help settle a discrimination lawsuit, Bloomberg News reported Sept 4.
The company will also put $4.5 million into a fund that will support recruitment, bias training, review or branch assignments and coaching programs for black advisers, according to Bloomberg.
The lawsuit, which was filed Aug. 31 with the U.S. District Court for the Northern District of Illinois, claimed that the company's policies "do not create an equal playing field for African Americans, but instead result in significant compensation and attrition disparities based on race."
The company allegedly assigns African American financial advisers to less lucrative branches and territories, with fewer opportunities and less wealthy potential clients. Meanwhile, white advisers were assigned to wealthier territories with greater opportunities.
In the Bloomberg report, JPMorgan spokesman Tom Kelly said the settlement will allow the company to "continue [its] focus on a diverse and inclusive environment." He added that the company will "enhance the careers of [its] black advisers."
The company has denied any wrongdoing.