NEW YORK -- Smith Barney Inc.'s settlement of a class-action lTC sex discrimination case was rejected yesterday by a federal judge, who called the company's plan to expand the role of women insufficient.
"The settlement is not fair, reasonable and adequate," U.S. District Judge Constance Baker Motley wrote in a 48-page decision.
Motley said the No. 2 U.S. brokerage company's proposed affirmative-action program for women was "amorphous" and questioned whether spending $15 million on it over four years would be enough.
Her decision was a surprise. She had given preliminary approval to the settlement last year.
Motley praised other terms of the settlement, which would have required Smith Barney, a unit of Travelers Group Inc., to establish a mediation program for plaintiffs to resolve sex-bias and harassment complaints, and create a fund to pay damages.