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.

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