Wall Street brokerage Morgan Stanley has agreed to pay $54 million to settle claims of widespread sex discrimination at the firm.
The settlement was announced last night just as a jury was to hear a trial in the case, brought by the government's Equal Employment Opportunity Commission (EEOC) and former Morgan Stanley bond seller Ms Allison Schieffelin.
Ms Schieffelin, who claimed she was denied promotions at the firm because she is a woman, will be paid $12 million under the settlement, with $40 million earmarked for claims filed by other women at the firm.
Morgan Stanley will also set aside $2 million to pay for diversity training and anti-discrimination programs.
A trial would have meant weeks of ugly publicity for Morgan Stanley. The EEOC had planned to call as witnesses more than two dozen women to establish what it called a pattern of discrimination.
The EEOC represented hundreds of women who claimed men at Morgan Stanley invited clients on men-only strip club outings, groped women and made lewd comments.
In addition, the EEOC claimed women were passed over for promotions because of their gender. Morgan Stanley acknowledged that few women were promoted to the highest levels of the firm but denied discrimination.
Ms Schieffelin (42), who made $1.35 million in 1998, was fired in 2000 after claiming she was passed over for a promotion to managing director. She has said Morgan Stanley "destroyed my career".