Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
MajorsJul 26, 2019
Alex and Ani Sues Bank of America for Discrimination
The jewelry company accuses the bank of discriminatory lending practices against a women-led company and is asking for $1 billion in damages.
Alex and Ani founder Carolyn Rafaelian was featured in Bank of America advertisements highlighting its commitment to diversity in lending. The company filed a lawsuit against the bank Wednesday for alleged discriminatory lending practices.
New York—Alex and Ani LLC filed a lawsuit against Bank of America Corp. Wednesday, alleging lending discrimination against the women-led company and asking for $1.1 billion in damages.
According to the lawsuit, filed in federal court in New York, Bank of America granted the company a line of credit in 2016 to fund its operations but declared Alex and Ani in default in December 2018, allegedly without warning.
The suit claims that Bank of America breached the credit agreement by “fraudulently alleging a default that didn’t exist,” as Alex and Ani made timely payments and complied with the terms of the agreement.
Cutting its credit line cost the company more than $1 billion in expenses, lost revenue and reduced market value, as per the court filing.
The lawsuit claims the bank’s actions are “driving Alex and Ani towards bankruptcy and milking it for literally tens of millions of dollars in fees. The endgame is clear: Bank of America wants the women out of power at Alex and Ani.
“It wants to bring back the good old days, when a male Alex and Ani CFO [Bob Woodruff] let Bank of America charge whatever it wanted for BofA’s putative ‘services.’”
Initially, the suit states, Bank of America and Alex and Ani had a “comfortable” relationship, with the financial institution featuring Alex and Ani founder Carolyn Rafaelian in advertisements to showcase its commitment to diversity to the public.
Despite its “glossy marketing,” the suit alleges, the bank is “decidedly retrograde in its views toward women, toward people of color and toward other protected groups.”
The relationship allegedly began to sour in December 2017, when Andrea Ruda, a woman, stepped in as Alex and Ani chief financial officer after Woodruff left the company.
Under Woodruff’s year-long tenure, the bank allegedly took in millions of dollars in fees, consulting costs and other reimbursements from Alex and Ani, but he made financial and operational decisions for the company that were “unjustifiable--even reckless,” the lawsuit states.
Ruda, on the other hand, is described as “young, no-nonsense and driven to cut costs and trim the fat.” She slashed payroll costs and reviewed productivity to the benefit of then-struggling company’s bottom line, and by extension, the bank’s investment.
However, the lawsuit states, the company has been treated unfairly since Ruda’s appointment as CFO because the bank “has a gender bias problem,” pointing to the nearly $211 million in discrimination penalties that the bank has
paid to various companies since 2000.
The suit claims that as soon as Ruda started as CFO, Bank of America began advocating for the hiring of expensive outside consultants, specifically a male chief restructuring officer, to run Alex and Ani’s finances at the company’s expense.
As her tenure stretched on, she found the bank to be “increasingly uncooperative,” despite her "herculean--and objectively successful--efforts to shore up and turn around Alex and Ani’s finances.”
In the company’s statement on the lawsuit, Bank of America spokesman Bill Halldin said the loan is spread out across seven banks, including Bank of America, which also acts as an administrative agent.
“As the complaint itself notes, the company has faced serious financial challenges for nearly two years. The banks have worked closely with the company during this time,” he said. “Bank of America’s demonstrated record of support for diverse businesses is well-noted and widely recognized.”
In March, the bank announced that it had pledged $100 million to the Tory Burch Foundation Capital Program in 2019, a program that provides loans to women entrepreneurs.
Alex and Ani did not respond to National Jeweler’s request for further comment on the lawsuit by press time.
The company is represented by Harmeet Dhillon of Dhillon Law Group Inc., who has taken on several high-profile First Amendment cases.
The case is Alex and Ani LLC v Bank of America NA, 19-cv-6929, U.S. District Court, Southern District of New York.
The suit claims that as soon as Ruda started as CFO, Bank of America began advocating for the hiring of expensive outside consultants, specifically a male chief restructuring officer, to run Alex and Ani’s finances at the company’s expense.
As her tenure stretched on, she found the bank to be “increasingly uncooperative,” despite her "herculean--and objectively successful--efforts to shore up and turn around Alex and Ani’s finances.”
In the company’s statement on the lawsuit, Bank of America spokesman Bill Halldin said the loan is spread out across seven banks, including Bank of America, which also acts as an administrative agent.
“As the complaint itself notes, the company has faced serious financial challenges for nearly two years. The banks have worked closely with the company during this time,” he said. “Bank of America’s demonstrated record of support for diverse businesses is well-noted and widely recognized.”
In March, the bank announced that it had pledged $100 million to the Tory Burch Foundation Capital Program in 2019, a program that provides loans to women entrepreneurs.
Alex and Ani did not respond to National Jeweler’s request for further comment on the lawsuit by press time.
The company is represented by Harmeet Dhillon of Dhillon Law Group Inc., who has taken on several high-profile First Amendment cases.
The case is Alex and Ani LLC v Bank of America NA, 19-cv-6929, U.S. District Court, Southern District of New York.
More on Majors
The Latest
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired CollectionInterior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.
Weekly QuizApr 18, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs ImpactDuring a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning CenterThe free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from MembersThe feedback will be used to prepare other jewelers for the challenges ahead, the organization said.
TechnologyApr 17, 2025
Technology Therapy Group Expands AI Training for Jewelry RetailersThe online sessions are designed to teach jewelers to use AI tools like ChatGPT and Claude to grow their business.
IndependentsApr 16, 2025
Catbird Expands to ChicagoThe opening marks the jewelry retailer’s first location in the Midwest.
CollectionsApr 16, 2025
Foundrae’s First Commitment Jewelry Collection Unites Through LoveThe “United in Love” collection offers tangible mementos of hearts entwined with traditional and non-traditional commitment heirlooms.
IndependentsApr 16, 2025
Indiana Jeweler to Host Black Jewelry Designer Pop-UpRobert Goodman Jewelers will hold a “Black Jewelry Designers and Makers” event on April 27.
EditorsApr 15, 2025
Tariffs: What We Know Right Now Editor-in-Chief Michelle Graff answers questions about how the new taxes levied on countries like India and China will impact the industry.
EditorsApr 15, 2025
Q&A: Bogolo Joy Kenewendo on Making Deals, Marketing DiamondsKenewendo, Botswana’s minster of minerals and energy, discusses closing the deal with De Beers and the work that was missed along the way.
AuctionsApr 15, 2025
23-Carat ‘Golconda Blue’ Heads to AuctionThe historic fancy vivid blue diamond set to headline Christie’s Geneva sale next month could sell for up to $50 million.
FinancialsApr 15, 2025
LVMH’s Q1 Sales Slip 2 PercentLVMH CFO Cécile Cabanis also discussed the effects of tariffs so far.
CrimeApr 15, 2025
Jon Hamm Plays a Jewel Thief on Apple TV+The “Mad Men” and “The Morning Show” star steals jewelry, art, and handbags from his wealthy neighbors in “Your Friends & Neighbors.”
SourcingApr 15, 2025
Diamond Club West Coast Names 2025 BoardThe organization has reelected Kalpesh Jhaveri as president.
FinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.
CollectionsApr 14, 2025
Sauer Embraces Emptiness Through ‘Ma’ CollectionThe collection pays tribute to the Japanese philosophy of Ma, studying balance, stillness, and the interplay between presence and absence.
IndependentsApr 14, 2025
Illinois Jeweler Closing After 45 YearsMari Lou’s Fine Jewelry in Orland Park, a suburb of Chicago, is closing its doors.
GradingApr 14, 2025
GIA Expands Overseas Services as Tariffs Kick InGIA’s labs in Dubai and Hong Kong are now accepting larger diamonds in light of the “logistical challenges” presented by the new tariffs.
AuctionsApr 11, 2025
Piece of the Week: A Replica of Princess Grace’s Wedding EarringsThese earrings by Van Cleef & Arpels, featuring the same design as a pair worn by Princess Grace, are up for auction at Woolley & Wallis.
Recorded WebinarsApr 11, 2025
Watch: Top Tips for Saving Time With AITwo experts share how artificial intelligence tools can help retailers run a more efficient business.
SourcingApr 11, 2025
Mikimoto Names New President, CEO for U.S. DivisionKentaro Nishimura, who has been with the pearl company since 1997, has been promoted to president and CEO of Mikimoto America.
WatchesApr 11, 2025
Bulova Documentary Now on Amazon Prime“America Telling Time: 150 Years of Bulova” explores the storied history of the American watchmaker.
