American Express Financial Advisors Inc., a subsidiary of American Express, has reached a US$31 million dollar settlement to stave off a nationwide gender and age discrimination class action suit.

The settlement was submitted for preliminary approval to U.S. District Court Judge Henry Kennedy. The settlement could involve as many as 4,000 female financial advisors.

The case began in October 1999, when Shelley Kosen, Lois Wisocky, and Meg Roy filed charges with the Equal Employment Opportunity Commission alleging sex and age discrimination, as well as unequal pay. The women claimed the company created a glass ceiling for women by handing lucrative accounts and steering client leads to male advisors, and by engaging in preferential training, mentoring, and promotion of men. Fourteen women, from seven different states, later joined the action by filing additional charges alleging the same practices.

In addition to the US$31 million, which will be distributed to eligible class members and pay attorneys’ fees and costs, American Express Financial Advisors has agreed to enhance its operations nationally, including making changes to its account and lead distribution process, its internal complaint procedures, and its promotion process. The company will also create a Field Diversity Officer position that will implement and monitor these changes internally at the company.

According to Susan Stokes, representing the plaintiffs, “This settlement is a tremendous achievement. It was made possible by the determination of a few women who acted on their convictions.”