IRA, brokerage and 401K accounts: Who’s affected?
If you trusted a bank or firm to handle your IRA, 401K or brokerage account with a cash sweep feature and it allegedly did not optimize your returns, you may be eligible to take part in a class action lawsuit investigation. Fill out the form to receive a free case review.
Banks and brokerage firms are entrusted to serve clients with the utmost integrity. However, some financial institutions are currently facing allegations related to the management of cash sweep accounts, including Individual Retirement Accounts (IRA) and 401K accounts. These claims specify that certain financial organizations are working with affiliated banks that are failing to maximize returns for investors.
Multiple financial organizations are currently under review regarding the practices surrounding cash sweep accounts. Those that are facing ongoing inquiries include:
- Wells Fargo
- Ameriprise Financial
- LPL Financial
- E*Trade
- Edward Jones
- MassMutual
- Raymond James
- Merrill Lynch
- Stifel
- J.P. Morgan
- Morgan Stanley
- UBS
- Charles Schwab
- Osaic
- Advisor Group
- Royal Alliance
- Lincoln Financial Group
- Securities America
- Equitable Advisors, LLC
- AXA Advisors, LLC
- Cambridge Investment Research
- Avantax Investment Services, Inc.
If you or a loved one have invested with one or more of these organizations, you may be eligible to take part in a class action lawsuit. you may be eligible to take part in a class action lawsuit.
Do you qualify?
Are you dissatisfied with the returns generated by your brokerage, IRA or 401K sweep account? Your bank or brokerage firm may not be handling the account with your best interest in mind. Fill out the form to learn more.
Fill out the form on this page for more information.
What is a brokerage, IRA or 401K cash sweep account?
A cash sweep account is designed to optimize interest for the account holder with very little time commitment and effort. This type of bank or brokerage account automatically transfers excess funds into a high-yield investment option each business day. The transfer includes any funds exceeding a predetermined threshold.
For example, an account holder may set the threshold at $10,000. If the account balance is $10,500 at the end of the day, the excess $500 is swept into an investment vehicle, typically a Money Market account.
With a sweep account, idle funds are not left stagnant but instead are invested whenever possible to maximize returns.
An IRA, brokerage, or 401K sweep account operates similarly, but is specifically designated for retirement savings. It still helps account holders optimize interest while providing an effective means to save for retirement in a hands-off manner.
IRA, 401K, and brokerage accounts may pay low interest rates
While IRA sweep accounts and many brokerage accounts are designed to automatically transfer funds to higher-yielding investment vehicles, certain banking institutions may not always operate in the best interest of the customers.
The U.S. is currently in a period marked by relatively high interest rates. However, specific banks and brokerage firms have been artificially deflating rates on sweep deposits. Rather than transferring funds to a Money Market account that offers competitive returns, these financial organizations transfer the funds to affiliated banks that are providing a fraction of the interest.
As a result, account holders do not receive the potential returns that are available in the current environment. Additionally, these financial institutions are experiencing massive profits.
Fill out the form on this page to see if you qualify for a free case evaluation.
See If You Qualify
Join an IRA, 401K or brokerage account class action lawsuit investigation
By submitting your information, you agree to receive communications from Top Class Actions and to be contacted by an attorney or law firm or their agents to discuss the details of your potential case at no charge to you if you qualify.
After you fill out the form, an attorney(s) or their agent(s) may contact you to discuss your legal rights.
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