Wealth management firms agree to pay $25.5 million to end employee class action

Several large U.S. wealth management companies have agreed to pay $25.5 million to settle a class action accusing them of suppressing wages and limiting career mobility. The agreement, filed in federal court in Kansas, marks one of the most significant recent settlements involving alleged hiring restraints in the financial sector.

Lawyers for the employees asked the judge to give final approval to the deal, which resolves claims from more than 4,400 current and former workers. The settlement covers individuals employed at firms such as Mariner Wealth Advisors and American Century Companies between 2012 and 2020.

Allegations of restricted hiring ripple through the finance industry

The employees claimed the companies violated antitrust laws by agreeing not to recruit or hire each other’s staff. They said the practice suppressed wages and limited professional opportunities across the industry. According to the court filing, American Century and Montage Investments previously entered into non-prosecution agreements with the U.S. Justice Department over related allegations.

American Century said it welcomed the settlement and reaffirmed its commitment to “fair and honest competition.” Attorneys representing Mariner Wealth and Montage did not respond to requests for comment. The firms maintained that they acted lawfully throughout the period covered by the lawsuit.

Court documents show the Mariner-related companies manage about $65.9 billion in assets, while American Century oversees roughly $230 billion. The plaintiffs argued that the settlement delivers immediate financial relief and avoids the uncertainty of prolonged litigation.

Settlement payments will vary based on length of employment. Attorneys estimated an average payout of around $3,700 per worker. Eligible employees will receive the funds automatically. The filing also noted that the plaintiffs’ lawyers plan to request up to one-third of the total settlement—about $8.5 million—to cover legal fees.

Although the companies denied wrongdoing, the case drew attention across the financial industry, where competition for talent remains intense. The outcome may influence how asset managers approach recruitment policies, especially as regulators continue examining labor practices in high-skill sectors.