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

We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

January 30, 2026
FINRA Arbitration Panel Orders J.P. Morgan to Amend Form U-5, Flags Potential Pattern of Conduct

A Financial Industry Regulatory Authority (FINRA) arbitration panel recently issued an unusually detailed decision in a dispute between J.P. Morgan Securities and former advisor Joshua David Sappi Biering, shedding rare light on how a firm may deploy - and sometimes abuse - the Form U-5 during advisor departures.

January 29, 2026
OFAC Targets Individual Trustee, Sending a Clear Warning to Fiduciaries and Family Offices

In a rare move, the Office of Foreign Assets Control (OFAC) penalized a former U.S. government official, underscoring that professional gatekeepers can face personal liability for sanctions violations tied to trust administration.

January 28, 2026
FINRA Advances Overhaul of Outside Business Activity Rules to the SEC

FINRA formally has advanced its proposed overhaul of outside business activity (OBA) regulations to the Securities and Exchange Commission.