Former Adviser Sues Bank of America Over Arbitration Policy
Katherine Mackey sued Bank of America in federal court, alleging a mandatory arbitration policy for discrimination claims violates a 2013 racial bias settlement.
Former financial adviser Katherine Mackey filed a lawsuit against Bank of America in Manhattan federal court, alleging the institution violated a 2013 racial bias settlement. Mackey challenges a November 2024 policy requiring employees at Bank of America and Merrill Lynch to use mandatory arbitration through JAMS for discrimination and harassment claims, which prevents workers from pursuing court litigation or class actions.
Mackey claims she experienced gender and age discrimination and harassment from younger male supervisors and colleagues prior to her termination in February 2025. She is seeking to void the arbitration requirement to move her specific claims into federal court.
Bank of America defended the legality of the policy, stating that arbitration forums like JAMS are routinely upheld in court. The bank indicated it intends to vigorously defend all aspects of the case.
