Tr?id=566623520170033&ev=PageView&noscript=1

Attorneys Believe James Gorman's "New Blood" Remarks Could Strengthen Ageism Lawsuits

Posted on June 26th, 2023 at 11:02 AM
Attorneys Believe James Gorman's

From the desk of Jim Eccleston at Eccleston Law 

James Gorman, CEO of Morgan Stanley, has faced criticism for his recent comments regarding the company's termination of around 3,500 employees since April. During a conference, Gorman stated that they had removed many managing directors to create opportunities for others and mentioned hiring new interns as "new blood" coming in.

Lawyers representing plaintiffs with discrimination claims against Morgan Stanley saw these remarks as evidence of ageism and other forms of discrimination, suggesting that the layoffs were aimed at shedding older, higher-paid workers and individuals in protected categories under federal law, including minorities.

According to AdvisorHub, the wealth management industry faces significant age-discrimination claims due to the large proportion of advisors over 55 years old. Lawyers emphasized the importance of companies preparing and establishing non-discriminatory reasons for layoffs to avoid inadvertent bias. Such comments by CEOs, especially those suggesting firing high earners, have been interpreted by courts as indicators of age discrimination.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.