In a significant legal development, Edward Jones & Co. resolved the Edward Jones Kingsview Advisors lawsuit with a $34 million settlement approved by a federal court. The lawsuit, first filed in 2018 accused the firm of systemic racial discrimination against Black financial advisors (FAs) including disparities in pay, mentorship and territory assignments. The settlement and its significance for Black FAs and corporate accountability were established, underscoring the lawsuit’s impact on the financial services industry.
The plaintiffs highlighted that only six percent of Edward Jones’ financial advisors were non-white, compared to a national industry average of 21 percent. Central to the lawsuit were the firm’s “Goodknight” and “Legacy” programs, designed to support new advisors with office space, mentorship and client access. Plaintiffs alleged that Black advisors were disproportionately excluded, limiting their career opportunities. Additionally, Black FAs were more likely to be assigned less profitable territories and faced burdensome repayment policies if they left the company.
Background of the Lawsuit
The Edward Jones Kingsview Advisors lawsuit was initiated by three named plaintiffs who experienced direct discrimination and retaliation when they raised concerns internally. They filed a class-action suit in May 2018, alleging violations of 42 U.S.C. §1981 and Title VII of the Civil Rights Act of 1964. These statutes provide legal protection against race-based discrimination but differ in scope and damages.
Key differences between §1981 and Title VII:
| Statute | Key Feature | Limitations |
| §1981 | Prohibits racial discrimination in contracts and employment | No cap on damages, no EEOC filing required |
| Title VII | Prohibits employment discrimination, recognizes disparate impact | Caps non-economic damages at $300,000 for largest employers |
The plaintiffs claimed both intentional race discrimination and disparate impact, arguing that Edward Jones’ policies systematically disadvantaged Black advisors. The District Court denied Edward Jones’ motion to dismiss both claims, finding sufficient evidence of disparities in mentoring, office assignment, and territory allocation.
Allegations of Discrimination
The lawsuit outlined specific ways in which Black advisors were disadvantaged:
- Program Exclusion: Black advisors were underrepresented in Goodknight and Legacy programs, which provide mentorship and client acquisition assistance.
- Territory Assignments: Black advisors were disproportionately assigned to less lucrative markets.
- Client Redistribution: Policies allowed retiring advisors to redistribute clients, often bypassing Black FAs.
- Repayment Policies: Advisors leaving Edward Jones faced a $75,000 training repayment obligation, which disproportionately affected Black employees.
Plaintiffs argued that these practices limited income potential, professional development, and retention for Black advisors, creating systemic barriers that persisted over years.
Settlement Details
The Edward Jones Kingsview Advisors lawsuit concluded with a $34 million settlement for eligible Black advisors employed between May 24, 2014, and December 31, 2020. The settlement included compensation, programmatic relief, and structural reforms.
Settlement components:
| Component | Description |
| Monetary Relief | $34 million distributed among eligible Black advisors |
| Service Awards | $150,000 to each of the three named plaintiffs |
| Attorney Fees | $8.5 million allocated to attorneys |
| Training Repayment | Reduction from $75,000 to $50,000 and forgiveness for prior departures |
| DEI Reforms | Mandatory demographic reporting and creation of FA Advisory Council |
The settlement required no admission of wrongdoing, but it mandated procedural and structural reforms to prevent future discrimination and improve equity. These reforms include enhanced reporting of demographic data and the establishment of an advisory council with diverse members to guide leadership on diversity, equity, and inclusion initiatives.
Impacts on Advisors
Former Edward Jones advisor Felicia Slaton-Young described the personal impact of the discriminatory practices. She highlighted that exclusion from mentorship and lucrative territories shaped career outcomes and earnings potential. Slaton-Young noted that the settlement provided not only financial relief but also validation for the lived experiences of Black advisors. The structural reforms, she emphasized, could prevent similar inequities for future generations of financial advisors.
Industry Context
The Edward Jones settlement is part of a broader trend of high-profile racial discrimination cases in the financial sector. Comparable cases include:
| Company | Settlement | Allegation Focus |
| Edward Jones | $34 million | Race discrimination against Black advisors |
| MetLife | $32.5 million | Exclusion from training and client opportunities |
| Kaiser Permanente | $11.5 million | Racial discrimination claims by Black employees |
| Wells Fargo | $7.8 million | Bias against Black and female applicants |
These settlements reflect increasing legal scrutiny of workplace policies that produce inequitable outcomes and the growing demand for accountability and systemic change within corporations.
Expert Insights
- Maria Flynn, labor attorney: “Discrimination is not only about overt prejudice—patterns of exclusion embedded in systems can be just as harmful and actionable.”
- Dr. James Coleman, workplace diversity expert: “Equitable access to mentorship and early career resources is vital in sectors where initial assignments determine long-term success.”
- Alisha Reynolds, former employment litigator: “Employers must audit practices regularly to prevent outcomes that disproportionately disadvantage protected groups, as highlighted in this case.”
These expert perspectives reinforce the significance of the Edward Jones Kingsview Advisors lawsuit in reshaping corporate approaches to equity and inclusion.
Key Takeaways
- Edward Jones reached a $34 million settlement resolving race discrimination claims.
- Black financial advisors were excluded from key mentorship programs and high-value territories.
- Settlement included financial compensation, repayment forgiveness, and DEI reforms.
- The case demonstrates the importance of auditing employment policies for disparate impact.
- Similar settlements in financial services reflect growing legal and corporate accountability.
Conclusion
The Edward Jones Kingsview Advisors lawsuit underscores that systemic discrimination can persist even in high-profile well-established firms. By addressing both compensation disparities and structural inequities, the settlement offers a blueprint for fostering inclusion in financial services. While monetary relief is significant, the reforms mandating demographic reporting and advisory oversight may provide lasting change. Ultimately, this case illustrates the critical importance of examining outcomes, not just intent, to create truly equitable workplaces.
FAQs
What was the Edward Jones Kingsview Advisors lawsuit about?
It addressed racial discrimination against Black financial advisors in mentorship, territory assignments, and compensation.
Who was eligible for settlement payments?
Black advisors employed by Edward Jones from May 24, 2014, to December 31, 2020.
Did Edward Jones admit wrongdoing?
No, the settlement included no admission of liability.
What programmatic changes resulted?
Forgiveness and reduction of training repayments, mandatory diversity reporting and creation of an advisory council.
How does this case fit broader trends?
It reflects increasing litigation and corporate accountability for systemic racial discrimination in employment.
References
Bachman, E. (2021, July 26). Edward Jones & Co. financial advisors reach $34 million settlement in discrimination case. Forbes. https://www.forbes.com/sites/ericbachman/2021/07/26/edward-jones–co-financial-advisors-reach-34-million-settlement-in-discrimination-case/
Slaton‑Young, F. (2021, April 15). Ex-Edward Jones advisor Felicia Slaton-Young discusses $34M settlement. Financial Planning. https://www.financial-planning.com/news/ex-edward-jones-advisor-felicia-slaton-young-discusses-34m-settlement
Edward Jones to settle race discrimination suit for $34 million. (2021). St. Louis American. https://www.stlamerican.com/business/business-news/edward-jones-to-settle-race-discrimination-suit-for-34-million/
National Law Review. (2021). Edward Jones & Co. financial advisors reach $34 million settlement in discrimination case. https://natlawreview.com/article/edward-jones-co-financial-advisors-reach-34-million-settlement-discrimination-case
AdvisorHub. (2025, March 11). Edward Jones hit with reverse discrimination suit over DEI policies. https://www.advisorhub.com/edward-jones-hit-with-reverse-discrimination-suit-over-dei-policies/
Bland v. Edward D. Jones & Co., L.P., No. 1:2018cv03673 (N.D. Ill.). Justia. https://law.justia.com/cases/federal/district-courts/illinois/ilndce/1%3A2018cv03673/352812/105/
