The headline-grabbing sex-harassment charges against Wall Street firms in the 1990s are a thing of the past, but not necessarily because things are better for women at financial firms.
In my story today for The New York Times, I discuss the progress — and lack of progress — since “The Boom-Boom Room” lawsuit against Smith Barney became synonymous with lurid behavior at brokerage firms.
Fast-forward 17 years, and such landmark cases are not as prevalent. Wall Street’s women are more aware of their rights and are not so timid anymore, says Linda D. Friedman, a partner at Stowell & Friedman. Still, she says her firm does a lot of work these days behind the scenes, assisting women who face discrimination but are reluctant to pursue litigation because of the repercussions it would have on their careers.
You may not be reading about these problems in your favorite newspaper or blog, but they’re still part of life for women who work in finance. You can read my story here.
A San Francisco Superior Court judge said this afternoon that he didn’t buy arguments by Kleiner Perkins Caufield & Byers that a sex discrimination case against it should be heard in private arbitration. The venture capital firm was sued in May by Ellen Pao, who said she was pressured into sex by a junior partner and then retaliated against when she complained.
Judge Harold Kahn had already told Kleiner that he wasn’t persuaded by its argument that Pao had no legal right to be in open court, but gave the firm a chance to file a revised motion. Today, Kahn told Kleiner “I thought your papers were terrific,” adding, “and I disagree with all of them.”
Here’s a story by the Mercury News about the action in court today.
I wrote about the Pao case in my Bloomberg column last month; Pao had said in her complaint that the top guys at Kleiner didn’t invite women to power dinners with big clients because women would “kill the buzz.” Kleiner denied her allegations.
Kleiner said today that it will appeal the judge’s decision. Companies fight hard to keep sex discrimination and other cases out of the public eye, and nothing serves that goal better than forcing cases into private arbitration. Here’s a story I wrote describing how the public has suffered from 25 years of business forcing litigants into closed-door arbitration hearings.
Buying a Starbucks gift card? You are agreeing to mandatory arbitration of any fraud or misrepresentation by the company.
American business entered its Teflon era on a spring day 25 years ago.
Lawyer Madelaine Eppenstein had taken the morning off from work for a parent-teacher event at her 5-year-old’s elementary school on June 8, 1987, when she was summoned to the principal’s office for an urgent call. Her husband and law partner, Theodore Eppenstein, told her they lost the Supreme Court case he had argued two months before on behalf of a couple trying to sue their stockbroker for fraud. [...] Read Article