Case: McReynolds v. Merrill Lynch & Co.

1:05-cv-06583 | U.S. District Court for the Northern District of Illinois

Filed Date: Nov. 18, 2005

Closed Date: 2016

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Case Summary

Between November 18, 2005 and November 16, 2006, current and former African-American financial advisor employees and trainees filed a lawsuit against their employer, Merrill Lynch & Co., Inc., in the U.S. District Court of the Northern District of Illinois under both Title VII of the Civil Rights Act of 1964 and 42 U.S.C. § 1981. The plaintiffs, represented by private counsel, asked the court for both monetary damages and injunctive relief, alleging the defendant engaged in race discrimination …

The plaintiffs filed their first amended complaint on July 19, 2006.

On November 8, 2008 the plaintiffs filed a motion for class certification. On August 9, 2010, the District Court (Judge Robert W. Gettleman) issued an amended order denying the plaintiffs' motion for class certification on the ground that commonality was not satisfied because the putative class members were supervised by hundreds of different people and had a wide variety of salary levels and positions. 2010 WL 3087483.

On February 14, 2011, Judge Gettleman denied the plaintiffs' motion for reconsideration for class certification and their request to narrow the class definition. Judge Gettleman held that the plaintiffs' disparate impact claim was not sufficient to satisfy the commonality requirement for class certification and that their class as proposed failed to satisfy either category of class certification because the individual questions of law and claims to relief predominated over those of the class. 2011 WL 658155.

The plaintiffs appealed this decision to the U.S Court of Appeals for the Seventh Circuit. (Judges Richard Posner, Diane Wood, and David Hamilton), which denied the request based on an untimely appeal.

The plaintiffs filed an amended motion for class certification in July 2011, shortly after the U.S. Supreme Court decided Wal-Mart Stores, Inc. v. Dukes. Judge Gettlman denied their motion on September 19, 2011, once again on commonality grounds. 2011 WL 4471028.

The employees filed an interlocutory appeal to the U.S. Court of Appeals for the Seventh Circuit. On February 24, 2012, the Seventh Circuit (Judges Posner, Wood, and Hamilton) reversed the District Court decision. The Circuit Court held that the issue of whether Merrill Lynch's policies had a disparate impact on African-American employees was appropriate for class-wide treatment because each of the plaintiffs' claims had the common question of whether Merrill Lynch "violated the antidiscrimination statutes." 672 F.3d 482.

Merrill Lynch's motion for rehearing en banc was denied by the Seventh Circuit on March 27, 2012. Its subsequent appeal to the U.S. Supreme Court was denied on October 1, 2012.

On July 13, 2012, the District Court issued certification of the disparate impact class, according to the Seventh Circuit's order.

On December 6, 2013, the District Court (Judge Gettleman) approved a settlement agreement on all claims proposed by the parties. Pursuant to the agreement, Merrill Lynch would allocate $160 million in a settlement fund, $25 million of which would be designated for extraordinary claims. The District Court also approved service awards of $250,000 for each Class Representative and $75,000 for each member of the Steering Committee. In regards to attorney's fees, the District Court approved the plaintiff's requested attorney's fees of 21.25% (20% of the first 100 million of the settlement fund and 15% of the remainder). The programmatic relief granted by the settlement consisted of several changes to company policies, including changes to the distribution of accounts, as well as the establishment of coaching for African American financial advisors and a diversity fund to assist African Americans in funding business development events. This portion of the settlement lasted for 3 years.

On December 16, 2014, a named plaintiff filed a motion to appeal the District Court's final approval of the class action settlement, but the Seventh Circuit (Diane P. Wood, Richard D. Cudahy, and Diane S. Sykes) denied the appeal based on an untimely request.

	Document
1:05-cv-06583	Docket [PACER] McReynolds v. Merrill Lynch & Co, Inc.	Sept. 26, 2016	Sept. 26, 2016 Docket
72 1:05-cv-06583	Second Amended Complaint McReynolds v. Merrill Lynch & Co, Inc.	Nov. 15, 2006	Nov. 15, 2006 Complaint 2006 WL 3886029
407 1:05-cv-06583	Amended Memorandum Opinion and Order McReynolds v. Merrill Lynch & Co., Inc.	Aug. 9, 2010	Aug. 9, 2010 Order/Opinion
407 1:05-cv-06583	Amended Memorandum Opinion and Order	Aug. 9, 2010	Aug. 9, 2010 Order/Opinion 2009 WL 3184179
447 1:05-cv-06583	Memorandum Opinion and Order McReynolds v. Merrill Lynch & Co., Inc.	Feb. 14, 2011	Feb. 14, 2011 Order/Opinion
482 1:05-cv-06583	Order McReynolds v. Merrill Lynch & Co., Inc.	Sept. 19, 2011	Sept. 19, 2011 Order/Opinion 2011 WL 4471028
513 1:05-cv-06583	Opinion U.S. Court of Appeals for the Seventh Circuit	Feb. 24, 2012	Feb. 24, 2012 Order/Opinion 672 F.3d 482
534 1:05-cv-06583	Class Certification Order	July 13, 2012	July 13, 2012 Order/Opinion 2012 WL 5278555
585-1 1:05-cv-06583	Settlement Agreement and Release McReynolds v. Merrill Lynch & Co., Inc.	Aug. 28, 2013	Aug. 28, 2013 Settlement Agreement
589 1:05-cv-06583	Preliminary Approval Order	Sept. 4, 2013	Sept. 4, 2013 Order/Opinion

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT filed by George McReynolds; Jury Demand.(mb, ) (Entered: 11/22/2005)	Nov. 18, 2005	Nov. 18, 2005 RECAP
2	CIVIL Cover Sheet (mb, ) (Entered: 11/22/2005)	Nov. 18, 2005	Nov. 18, 2005 PACER
3	ATTORNEY Appearance for Plaintiff George McReynolds by Linda Debra Friedman (mb, ) (Entered: 11/22/2005)	Nov. 18, 2005	Nov. 18, 2005 PACER
5	SUMMONS Returned Executed by George McReynolds as to Merrill Lynch & Co., Inc. on 1/20/2006, answer due 2/9/2006. (cdy, ) (Entered: 01/24/2006)	Jan. 20, 2006	Jan. 20, 2006 PACER
6	SUMMONS Issued as to Defendant Merrill Lynch & Co., Inc. (cdy, ) (Entered: 01/24/2006)	Jan. 20, 2006	Jan. 20, 2006 PACER
7	ATTORNEY Appearance for Plaintiff George McReynolds by Mary Stowell (Stowell, Mary) (Entered: 01/31/2006)	Jan. 31, 2006	Jan. 31, 2006 PACER
8	ATTORNEY Appearance for Plaintiff George McReynolds by James Bryan Wood (Wood, James) (Entered: 01/31/2006)	Jan. 31, 2006	Jan. 31, 2006 PACER
9	ATTORNEY Appearance for Plaintiff George McReynolds by Suzanne E. Bish (Bish, Suzanne) (Entered: 01/31/2006)	Jan. 31, 2006	Jan. 31, 2006 PACER
10	ATTORNEY Appearance for Plaintiff George McReynolds by George S. Robot (Robot, George) (Entered: 01/31/2006)	Jan. 31, 2006	Jan. 31, 2006 PACER
11	MINUTE entry before Judge Robert W. Gettleman : Defendant is given an extension of time to 3/13/2006 to file answer to the complaint. Joint status Report is due by 3/13/2006. Status hearing set for 3/15/2006 at 09:00 AM. Mailed notice (gds, ) (Entered: 02/09/2006)	Feb. 9, 2006	Feb. 9, 2006 PACER
12	APPLICATION for Leave to Appear Pro Hac Vice on behalf of Merrill Lynch & Co., Inc. by Nicholas J. Pappas; Order entered granting leave by Robert W. Gettleman. Filing fee $50 paid, receipt number 10425234 (cdy, ) (Entered: 02/23/2006)	Feb. 17, 2006	Feb. 17, 2006 PACER
13	APPLICATION for Leave to Appear Pro Hac Vice on behalf of Merrill Lynch & Co., Inc. by Mindy J. Spector; Order entered granting leave by Robert W. Gettleman. Filing fee $50 paid, receipt number 12425234 (cdy, ) (Entered: 02/23/2006)	Feb. 17, 2006	Feb. 17, 2006 PACER
14	APPLICATION for Leave to Appear Pro Hac Vice on behalf of Merrill Lynch & Co., Inc. by Adam K. Grant; Order entered granting leave by Robert W. Gettleman. Filing fee $50 paid, receipt number 10425234 (cdy, ) (Entered: 02/23/2006)	Feb. 17, 2006	Feb. 17, 2006 PACER
15	APPLICATION for Leave to Appear Pro Hac Vice on behalf of Merrill Lynch & Co., Inc. by Jeffrey S. Klein; Order entered granting leave by Robert W. Gettleman. Filing fee $50 paid, receipt number 10425234 (cdy, ) (Entered: 02/23/2006)	Feb. 17, 2006	Feb. 17, 2006 PACER
16	MINUTE entry before Judge Robert W. Gettleman : Status Report due by 4/10/2006. Status hearing is re-set to 4/12/2006 at 09:00 AM. Mailed notice (gds, ) (Entered: 03/03/2006)	March 3, 2006	March 3, 2006 PACER
17	MOTION by Plaintiff George McReynolds, Defendant Merrill Lynch & Co., Inc. for protective order (Leffert, Kim) (Entered: 03/09/2006)	March 9, 2006	March 9, 2006 PACER
18	NOTICE of Motion by Kim Ann Leffert for presentment of motion for protective order 17 before Honorable Robert W. Gettleman on 3/14/2006 at 09:15 AM. (Leffert, Kim) (Entered: 03/09/2006)	March 9, 2006	March 9, 2006 PACER
19	ATTORNEY Appearance for Defendant Merrill Lynch & Co., Inc. by Kim Ann Leffert (Leffert, Kim) (Entered: 03/10/2006)	March 10, 2006	March 10, 2006 PACER
20	ATTORNEY Appearance for Defendant Merrill Lynch & Co., Inc. by Lori E. Lightfoot (cdy, ) (Entered: 03/14/2006)	March 10, 2006	March 10, 2006 PACER
21	ANSWER to Complaint by Merrill Lynch & Co., Inc.(cdy, ) (Entered: 03/14/2006)	March 10, 2006	March 10, 2006 RECAP
22	RULE 7.1 CERTIFICATION by Merrill Lynch & Co., Inc. (cdy, ) (Entered: 03/15/2006)	March 13, 2006	March 13, 2006 PACER
23	MINUTE entry before Judge Robert W. Gettleman : Stipulation for entry of protective order 17 is granted. Agreed protective order entered. [For further detail see separate order] Mail notice. (cdy, ) (Entered: 03/16/2006)	March 14, 2006	March 14, 2006 PACER
24	AGREED PROTECTIVE ORDER. Signed by Judge Robert W. Gettleman on 3/14/2006.(cdy, ) (Entered: 03/16/2006)	March 14, 2006	March 14, 2006 PACER
25	MINUTE entry before Judge Robert W. Gettleman : Status Report due by 4/28/2006. Status hearing re-set to 5/9/2006 at 09:00 AM. Telephone notice (gds, ) (Entered: 04/06/2006)	April 6, 2006	April 6, 2006 PACER
26	MOTION by Plaintiff George McReynolds for extension of time Agreed Motion To Vacate Status Report Date And Initial Status Hearing Date (Friedman, Linda) (Entered: 04/26/2006)	April 26, 2006	April 26, 2006 PACER
27	NOTICE of Motion by Linda Debra Friedman for presentment of motion for extension of time 26 before Honorable Robert W. Gettleman on 5/2/2006 at 09:15 AM. (Friedman, Linda) (Entered: 04/26/2006)	April 26, 2006	April 26, 2006 PACER
28	MINUTE entry before Judge Robert W. Gettleman : Motion for extension of time 26 is granted. Status Report due by 5/10/2006. Status hearing re-set to 5/16/2006 at 09:00 AM. Telephone notice (gds, ) (Entered: 05/03/2006)	May 3, 2006	May 3, 2006 PACER
29	STATUS Report by George McReynolds, Merrill Lynch & Co., Inc. (Lightfoot, Lori) (Entered: 05/10/2006)	May 10, 2006	May 10, 2006 PACER
30	MINUTE entry before Judge Robert W. Gettleman : Status hearing held on 5/16/2006 Discovery ordered closed by 3/15/2007. Status hearing set for 3/15/2007 at 09:00 AM. Mailed notice (gds, ) (Entered: 05/17/2006)	May 16, 2006	May 16, 2006 PACER
31	EXECUTIVE COMMITTEE ORDER:Case referred to Magistrate Judge Michael T. Mason to conduct hearings and enter appropriate orders on the following pretrial motion/matter: discovery supervision; settlement conference. Signed by Executive Committee on 5/18/06. (cdy, ) (Entered: 05/22/2006)	May 18, 2006	May 18, 2006 PACER
32	MINUTE entry before Judge Michael T. Mason : This matter having been referred to Magistrate Judge Mason, an initial status hearing is set for 6/21/06 at 9:00 a.m. in courtroom 2214. The parties shall deliver courtesy copy of an initial status report providing the information required by this Court's Order Setting Initial Status Report to chambers, room 2206, by 6/16/06. Mailed notice (smm, ) (Entered: 06/04/2006)	June 4, 2006	June 4, 2006 PACER
33	MINUTE entry before Judge Michael T. Mason : Judge Mason having to recuse himself, initial status hearing set for 6/21/06 is stricken. Another magistrate judge will be reassigned once the recusal order is approved. (kef, ) (Entered: 06/19/2006)	June 19, 2006	June 19, 2006 PACER
37	EXECUTIVE COMMITTEE ORDER:Case referred to Magistrate Judge Morton Denlow for discovery supervision and settlement conference, signed on 06/19/06 by Judge Michael T. Mason who recused himself pursuant to IOP 14(B), signed by Executive Committee on 06/20/06. (See order for further detail). Mailed notice.(ar, ) (Entered: 06/22/2006)	June 20, 2006	June 20, 2006 PACER
34	MINUTE entry before Judge Morton Denlow : Status hearing set for 7/27/2006 at 10:00 AM. in Courtroom 1350. Parties shall deliver a copy of an initial status report to chambers, Room 1356, two business days before the initial status hearing. If the parties have recently prepared and filed an initial status report, the submission of the previously filed initial status report is sufficient. The parties are directed to review and to comply with Judge Denlow's standing order setting initial status report. Copies are available in chambers or through Judge Denlow's web page at www.ilnd.uscourts.gov. Mailed notice (dmk, ) (Entered: 06/21/2006)	June 21, 2006	June 21, 2006 PACER
35	MOTION by Plaintiff George McReynolds, Defendant Merrill Lynch & Co., Inc. for protective order Joint Motion for Protective Order (Attachments: # 1 Exhibit Exhibit 1)(Friedman, Linda) (Entered: 06/21/2006) 2 Exhibit Exhibit 1 View on PACER	June 21, 2006	June 21, 2006 PACER
36	Notice of Motion NOTICE of Motion by Linda Debra Friedman for presentment of motion for protective order 35 before Honorable Robert W. Gettleman on 6/27/2006 at 09:15 AM. (Friedman, Linda) (Entered: 06/21/2006)	June 21, 2006	June 21, 2006 RECAP
38	NOTICE of Motion by Linda Debra Friedman for presentment of motion for protective order 35 before Honorable Morton Denlow on 6/28/2006 at 09:15 AM. (Friedman, Linda) (Entered: 06/26/2006)	June 26, 2006	June 26, 2006 RECAP
39	MOTION by Plaintiff George McReynolds, Defendant Merrill Lynch & Co., Inc. to clarify (Attachments: # 1 Exhibit (Proposed)Order# 2 Certificate of Service)(Lightfoot, Lori) (Entered: 06/27/2006) 2 Exhibit (Proposed)Order View on PACER 3 Certificate of Service View on PACER	June 27, 2006	June 27, 2006 RECAP
40	Agreed NOTICE of Motion by Lori E. Lightfoot for presentment of motion by plaintiff to clarify 39 before Honorable Robert W. Gettleman on 7/5/2006 at 09:15 AM. (Attachments: # 1 Certificate of Service)(Lightfoot, Lori) (Entered: 06/27/2006) 2 Certificate of Service View on PACER	June 27, 2006	June 27, 2006 RECAP
41	MINUTE entry before Judge Morton Denlow : Joint Motion for entry of protective order 35 is granted. Enter agreed protective order. Mailed notices (gcy, ) (Entered: 06/30/2006)	June 27, 2006	June 27, 2006 PACER

Case: McReynolds v. Merrill Lynch & Co.

1:05-cv-06583 | U.S. District Court for the Northern District of Illinois

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