OAKLAND, Calif.--(BUSINESS WIRE)--If you invest in brokerage and advisory accounts, you may have lost money on your cash holdings. Many investment firms have paid customers unreasonably low interest rates on their cash sweep accounts compared to what's offered on the market. For example, Morgan Stanley made over $8 billion in net interest income between the low rate it offered customers on its sweep accounts and the higher fees it earned for itself by lending out the deposited funds, according to one class action lawsuit. Gibbs Law Group is investigating potential Cash Sweep Class Action Lawsuits to help investors recover their losses.
Worried about cash sweep losses after investing with Ameriprise, LPL or Morgan Stanley? Contact our consumer protection attorneys by calling 510-913-9519 or visiting our website: Bank Cash Sweep Class Action Lawsuits
How do I know if I lost money from a cash sweep account?
If you’ve had brokerage or advisory accounts with these firms, you may have been harmed by their client sweep account practices:
In addition, the SEC has begun probing Morgan Stanley and Wells Fargo on their cash sweep programs. These firms' extremely low interest rates on cash sweep accounts may potentially be a breach of fiduciary duty.
An investor with Morgan Stanley alleges the firm paid some of its clients interest as low as 0.05% while Morgan Stanley received interest rates of up to 5.63%. Another investor alleges that LPL Financial paid customers as low as 0.35%, a rate significantly lower than rates offered as high as 4.6% at other brokerage and advisory firms.
Partner Rosemary Rivas says, “These major firms have a fiduciary duty to act in their clients’ best interests but have enriched their own bottom lines instead. We’re committed to holding them accountable and recovering money that rightly belongs to investors.”
Gibbs Law Group's winning record protecting investors and consumers from firm misconduct
Our consumer protection attorneys are leaders at holding big firms and banks accountable. We have recovered hundreds of millions of dollars on behalf of investors and consumers, and the firm's attorneys have received numerous awards including "Class Action Practice Group of the Year," “Top Boutique Law Firms in California” and "Titans of the Plaintiffs Bar." In addition to our leadership in class action lawsuits, we also represent thousands of investors in individual FINRA arbitrations against brokers and advisors who have breached their fiduciary duty.
