Citi Ordered to Pay Ex-Broker $1.4M in Gender Discrimination Case
A FINRA arb panel ruled in favor of a former broker who sued Citigroup, claiming discrimination and retaliation.
Arbitrators have ordered Citigroup to pay more than $1.4 million to a former broker at the firm who had sued, alleging unlawful gender discrimination and subsequent retaliation in the terms, conditions and privileges of her employment at the company after she complained about the alleged discrimination.
Erin Ann Daly filed a complaint against the company on Nov. 28, 2016, in U.S. District Court for the Southern District of New York in Manhattan. But on Feb. 6, 2018, Judge Richard J. Sullivan dismissed her Sarbanes-Oxley whistleblower claim and referred her other claims to arbitration.
Daly took her case to the Financial Industry Regulatory Authority’s Dispute Resolution Services. Last week, a three-person public arbitration panel ruled in her favor. The decision was posted Friday on FINRA’s website.
The panel ordered Citigroup to pay Daly $1.4 million in compensatory damages, plus interest on that sum at the rate of 3.25% per annum from the date of the award, through and including the payment of the award in full, and $42,000 in attorneys’ fees.
The panel also recommended the expungement of the reason for termination and termination explanation in Section 3 of Daly’s Form U5 filed by Citigroup on Dec. 23, 2014, and maintained by the Central Registration Depository.
The panel recommended that the reason for termination be changed to “other” and the explanation be deleted in its entirety and be replaced with the following language: “In a decision on Ms. Daly’s gender discrimination and defamation claims, an arbitration panel has found that she was illegally discharged.”
Citigroup on Tuesday told ThinkAdvisor in a statement: “As we have maintained for the last six years, we do not believe Ms. Daly’s claims have any merit. We disagree with this decision and will explore our options.”
Michelle Daly, the attorney representing the former broker, countered that, telling ThinkAdvisor: “The arbitration panel correctly found that Citi acted in violation of several laws. However, we believe Citi will continue to deny and delay justice to deter other whistleblowers.” Erin and Michelle are sisters, the attorney said.
(Pictured: Citigroup headquarters in New York)