Junior investment banker sues for millions over "inability to get 8 hours of sleep," reaches settlement with Wall Street boutique investment bank

Wall Street’s renowned boutique investment bank Centerview Partners recently reached a settlement with a former junior analyst, ending a high-profile legal dispute. The core issue of the lawsuit centered on whether the physiological need for investment banking junior staff to “sleep at least 8 hours every night” is compatible with the demanding workload typical of investment banking.

According to media reports, the parties reached an agreement on the eve of jury selection scheduled for this Monday. Plaintiff Kathryn Shiber previously sought $5 million in damages, accusing Centerview of unfair dismissal after she informed the company that she needed regular sleep for health reasons. The case was originally set for a week-long trial, which was expected to reveal internal details of this private investment bank’s operations.

Centerview subsequently confirmed the settlement but declined to disclose specific terms. A firm spokesperson emphasized in a statement that Shiber’s legal claims were “baseless,” and that the company was prepared to prove this in court and was confident of winning. The spokesperson stated that the settlement was to “put this distraction behind us” and focus on serving clients.

Resolving the case avoided a trial that could have publicly scrutinized Wall Street’s “overwork culture.” Although the case is now closed, it has reignited market discussions about the workload and mental health balance of junior employees in the finance industry, especially amid recent concerns over burnout within the sector. Investors and management are re-evaluating the sustainability of high-pressure work models.

Conflict Between Basic Functions and Physiological Needs

The case’s focus was on the definition of the “core functions” of an investment banking analyst role. Court documents show that Shiber joined Centerview in 2020 after graduating from Dartmouth, viewing it as a “dream opportunity.” However, shortly after starting, she disclosed to HR that she suffered from mood and anxiety disorders and needed to ensure at least 8 to 9 hours of sleep each night at a fixed time.

Initially, Centerview allowed her to log off between midnight and 9 a.m. But about a month later, management deemed this arrangement “unworkable.” Shiber states she was fired during a Webex video call on September 15, 2020. At that time, the company argued she should have known that the role involved unpredictable hours and accused her of occupying a “desirable position that could have been offered to others.”

In court filings, Centerview argued that being able to handle unpredictable working hours was a core requirement of the analyst role, which was “completely incompatible” with Shiber’s demand for fixed hours. The firm pointed out that because Shiber insisted on “strictly stopping” work at midnight each night, her colleagues had to take over her workload. Given Centerview’s lean staffing structure, this approach led other junior bankers to endure unsustainable pressure, ultimately forcing the firm to add a new analyst to the deal team.

Financial Disclosure Risks and Litigation Pressure

Before reaching a settlement, Centerview faced pressure to disclose sensitive financial data. According to the Financial Times, at last week’s pre-trial hearing, U.S. District Judge Edgardo Ramos ruled that details of Centerview’s revenue, profits, and financial performance could be disclosed during the trial.

Centerview’s lawyers had attempted to block this disclosure, arguing it could create a “David versus Goliath” narrative before the jury, potentially harming the bank’s image. The judge rejected this request, noting that there was a “genuine dispute” over whether the unpredictable hours are a necessary aspect of the role.

If the case proceeds to trial, high-level executives including co-founder Robert Pruzan and co-president Tony Kim were expected to testify. The settlement thus allowed the firm to avoid publicly detailing its highly profitable business model and employee treatment in New York.

Wall Street’s Working Hours Under Scrutiny

At this time, Wall Street is under increased scrutiny over the workload of junior staff. According to Bloomberg, the deaths of two young Bank of America employees in 2024 sparked widespread discussion about overwork, though it remains unclear whether long hours were a direct cause.

In response, some major banks have begun to limit junior bankers’ working hours. JPMorgan set a weekly cap of 80 hours in 2024, while Bank of America introduced an internal platform to monitor compliance with a 100-hour weekly limit.

Centerview, founded in 2006 by veteran dealmakers Blair Effron and Robert Pruzan, has grown into a top M&A advisory firm, competing with giants like Goldman Sachs. The firm has served as exclusive advisor for Meta Platforms Inc. on investments in Scale AI, and participated in large deals such as Sycamore Partners’ $10 billion acquisition of Walgreens Boots Alliance Inc. While the settlement resolves the specific legal dispute, it does not eliminate ongoing questions about how elite investment banks balance high service standards with employee well-being.

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