Women Renew Charges of Sex Discrimination Against Smith Barney

Market Wire, November, 2006

Five female financial advisors filed an amended class action lawsuit today in federal court in the Northern District of California, charging sex discrimination at Smith Barney, the retail brokerage arm of Citigroup, which is the nation's largest financial institution. Today's filing amends a class action complaint filed in March of last year by adding additional plaintiffs from Southern California and Florida, and amplifies the allegations in the original class action complaint.

"Today, two more women, from two more Smith Barney branches, have come forward to join the class action gender discrimination lawsuit against the company. Their stories confirm the allegations of the complaint that female financial advisors are not treated fairly and are denied compensation at Smith Barney branches from coast to coast," said Kelly Dermody of Lieff, Cabraser, Heimann & Bernstein in San Francisco, California, one of the firms representing the plaintiffs.

Adam Klein, of Outten & Golden, LLP in New York City, another of the plaintiffs' attorneys, explained, "These courageous women have come forward to hold Smith Barney accountable for treating female brokers like second-class citizens. We are long past the day when 100% effort means 70% pay for women in the workplace."

The original plaintiffs, Renee Fassbender-Amochaev, Deborah Orlando and Kathryn N. Varner, and two new plaintiffs, Ivy So and Lisa Strange Weatherby, claim they were discriminated against with respect to their compensation at Smith Barney. Specifically, the women allege that Smith Barney:

--  Systemically discriminates against women in allocating business
    opportunities.
--  Discriminates in the account distribution process, routinely assigning
    smaller and less valuable accounts to female brokers, including those who
    outperform their male counterparts, than to male brokers.
--  Fails to provide women with the same level of sales support,
    administrative support, and other support as it provides to men.
--  Maintains a corporate culture hostile to female professionals.
    

Cyrus Mehri of Mehri & Skalet, PLLC in Washington, DC, who also represents the plaintiffs, said, "Smith Barney's corporate practices foster a good old boy culture, where men receive a disproportionate share of business opportunities. By bringing this case, these women will ultimately be a catalyst for systemic change."

Since the original complaint was filed, the plaintiffs have had several important victories in the case.

Discovery

Most recently, the plaintiffs were successful in forcing Smith Barney to turn over many documents that may help prove their case, including documents that Smith Barney sought to withhold from a prior gender discrimination case against Smith Barney, Martens v. Smith Barney, Inc., which settled in 1998. Specifically, on October 20, 2006, Magistrate Judge Joseph C. Spero ordered Smith Barney to produce transcripts and expert reports from the Martens case, as well as some of the claims filed in that case by female brokers -- a huge victory for the plaintiffs and the class. Plaintiffs' counsel believes these documents will demonstrate a history and culture of inequality toward women at Smith Barney that persists today; assist the plaintiffs in understanding Smith Barney's current policies and procedures; and educate the plaintiffs about the types of policies and practices that led to past gender-related complaints, and the procedures Smith Barney implemented, or failed to implement, to address such complaints.

Venue

The plaintiffs successfully resisted efforts by Smith Barney to transfer the case to a judge in New York City that retained jurisdiction over a prior case filed against Smith Barney. The plaintiffs' victory on this motion ensures the case will stay in San Francisco, California, in the court where it was originally filed.

Further information on the case

The plaintiffs are represented by Lieff, Cabraser, Heimann & Bernstein, LLP in San Francisco and Nashville, Mehri & Skalet, PLLC in Washington, DC, and Outten & Golden, LLP in New York. More information about each firm can be found on their websites:

Lieff, Cabraser, Heimman & Bernstein, LLP: www.lchb.com .

Mehri & Skalet, PLLC: www.findjustice.com .

Outten & Golden, LLP: www.outtengolden.com .

More information about the lawsuit Amochaev et al. v. Citigroup Global Markets, Inc., d/b/a/ Smith Barney can be found at www.genderlawsuitagainstsmithbarney.com .

CONTACT: Kelly Dermody 415-956-1000 Cyrus Mehri 202-822-5100 Adam Klein 212-245-1000