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Cash Sweep Lawsuit
Simmons Hanly Conroy has filed multiple class action lawsuits against financial institutions over unreasonably low interest rates on cash sweep accounts. These lawsuits claim that some financial institutions prioritized their own profits at the expense of their customers’ best interests.
If you’ve been impacted by a low-interest cash sweep program, contact Simmons Hanly Conroy now. You may qualify for compensation from a cash sweep lawsuit.
Cash Sweep Programs & Unreasonably Low Interest Rates
A cash sweep program allows excess funds in an investment account to automatically be transferred or “swept” into interest-bearing accounts. This allows customers to earn a return on their cash balances.
By law, financial institutions must act in the best interests of their customers and provide reasonable rates of interest on cash balances. When they fail to do so, they violate their obligations to their clients.
One lawsuit filed against UBS® alleges the company pays anywhere from 0.05% to 1.05% on cash sweep accounts, while others pay closer to 5%.
Financial institutions that pay unreasonably low interest rates on cash sweep accounts earn enormous profits by shortchanging their customers.
Class action lawsuits for cash sweep programs aim to hold these institutions accountable for their unfair practices and secure compensation for those affected.
“Class actions are one of the most effective forms of impact litigation,” explained Senior Attorney Sona Shah. “Litigation at this level can make large-scale change that benefits society as a whole.”
Financial Institutions Named in Cash Sweep Lawsuits
Multiple financial institutions have been accused of providing customers with unreasonably low interest rates in order to boost their bottom lines.
Simmons Hanly Conroy has filed cash sweep lawsuits against:
- Ameriprise Financial®
- Charles Schwab®
- JPMorgan®
- LPL Financial®
- Morgan Stanley®
- Raymond James®
- UBS®
- Wells Fargo®
The interest earned from these low-rate sweep accounts can be so minimal that, in some cases, it’s outweighed by the fees or costs associated with managing the account.
As a growing number of cash sweep program lawsuits are filed across the country, many well-known financial institutions are coming under scrutiny for their allegedly unfair practices.
Who Can Join the Cash Sweep Class Action Lawsuits?
You may be eligible to join a cash sweep class action lawsuit if:
- You have an IRA, brokerage account, or investment advisory account
- Your cash balance was swept into a cash sweep program
- Your financial institution provided unreasonably low interest rates
Contact Simmons Hanly Conroy now to see if you may qualify for compensation from a cash sweeps lawsuit. Our firm is actively fighting for those wronged by financial institutions.
Let Simmons Hanly Conroy Fight for You
As a nationwide leader in complex litigation, Simmons Hanly Conroy has represented thousands of individuals harmed by corporate wrongdoing.
Why choose Simmons Hanly Conroy?
- Over 25 years of experience standing up to powerful businesses
- More than 100 attorneys and 175 staff members nationwide
- $10.8 billion+ total recovered for our clients
There are no upfront costs or hourly fees to work with our attorneys. We only get paid if your case results in compensation.
Call (855) 264-6270 now or fill out our contact form to see if we can help you get the money you deserve.
Cash Sweep Lawsuit FAQs
What is the disadvantage of cash sweep programs?
Cash sweep programs can be beneficial when investors receive a reasonable rate of interest on their cash deposits. However, some financial institutions offer unreasonably low interest rates on funds in their cash sweep programs, resulting in minimal returns for their clients.
In some cases, this may end up costing customers more than they earn. For instance, if a financial institution charges a 1% management fee to manage a client’s funds but only offers a 0.05% interest rate on swept cash, the fees paid may exceed the returns received.
Can I still join a cash sweep class action lawsuit?
Yes. You may be able to join the cash sweep class action lawsuit if a financial institution failed to provide a reasonable rate of interest on funds you had in a cash sweep program.
Get a free consultation now to see if Simmons Hanly Conroy can help you seek justice.
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Reviewed by:Sona R. Shah- Fact-Checked
- Legal Reviewer
With over 20 years of experience practicing law, Sona is a senior attorney in the firm’s Complex Litigation Department, where she focuses on litigating all phases of class actions.