Merrill Lynch has agreed to settle a class action lawsuit for almost $20 million over allegations that it discriminated against advisors of color, accusations the firm has vehemently denied.

The settlement is the result of a three-year process that began when several disgruntled former Merrill employees filed a race discrimination suit in a Florida court. The matter eventually moved to federal court since not all the parties were residents of Florida.

The ex-employees, who worked mostly as financial advisors, claimed they were passed over for promotions and didn’t receive the same level of compensation as their white colleagues. They also claimed that they were terminated from their positions at a higher rate than their white counterparts. 

They argue that Merrill’s company-wide polices were on their face neutral but still executed in a manner that had an adverse impact on the salaries and advancement potential of the African-American advisors, the complaint said.

The plaintiffs said that they had to meet different standards than white advisors did, including minimum threshold production credit requirements, and that they lacked support and faced inequitable teaming opportunities, according to the original complaint.

Merrill denied the claims and stated that it has tried to maintain equality among all its advisors.

“Defendants believe that they treat all employees fairly and equally regardless of race or color and are committed to ensuring equal employment opportunity,” said the preliminary approval statement for the settlement agreement. “To that end, defendants believe that all financial advisors have the same opportunities to earn compensation regardless of race or color and are paid based on their success in advising clients.”

Despite those claims, the firm decided that it was in its best interest to settle the case. The actual settlement, $19,950,000, will cover individual settlement payments to eligible class members, court costs, and attorney fees.

Along with the hefty settlement, Merrill agreed to several policy changes including additional diversity and inclusion training and initiatives to attract more minorities. The firm will also hire an outside consultant to analyze the pay provided to all advisors to ensure that it is equitable.

“The proposed settlement of this important civil rights issue remedies the policies and practices that [the] plaintiffs challenged, thereby increasing opportunities for African-American financial advisors who were previously disadvantaged because of their race and/or color,” the settlement agreement said.