New York ? Wall Street brokerage Morgan Stanley on Monday settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $54 million.

In its lawsuit, the EEOC alleged a pattern of discrimination that denied scores of women promotions and gave higher salaries to less productive men.

U.S. District Judge Richard Berman had scheduled opening statements for Monday. Eight women and four men were chosen as jurors on Friday.

The CEO of Morgan Stanley and the chairperson of the EEOC, which brought the suit in 2001, had personally become involved in settlement talks during the weekend, Berman said.

He said the settlement would include $12 million for Allison Schieffelin, the former Morgan Stanley bond seller who is the lead plaintiff.

Morgan Stanley is to implement “far-reaching” measures — including agreeing to oversight by an outside monitor — to enhance the role of women in its work force. In addition, a retired federal judge is to oversee a $40 million claims fund for women alleging discrimination at the firm, Berman said. The settlement also provides $2 million for gender diversity programs.

Schieffelin hugged her parents after the settlement was announced in New York federal court. “I am so happy that there is a great settlement that’s good for everybody,” she said outside court.

Schieffelin said Morgan Stanley condoned a hostile workplace where men made sexist comments and organized trips to topless bars and strip clubs. Women were excluded from the outings, which sometimes included her clients, Schieffelin said. She eventually filed a complaint with the EEOC, which sued the firm.

Allison Schieffelin rejoices after leaving federal court in New York. She will receive a 2 million award as part of a settlement between Morgan Stanley and the Equal Employment Opportunity Commission. Schieffelin, pictured Monday, was the lead plaintiff in a sex-discrimination lawsuit.