Raymond James Will Pay $15M To Settle Hidden Fees Class Action

Close to 59,000 Raymond James Financial customers have secured a $15 million settlement resolving class action allegations that the company hit consumers with a hidden “processing” fee.

Lead plaintiffs, Jyll Brink, Caleb Wistar, and Ernest Mayeaux, accused the financial institution of hiding the money grab from unsuspecting customers.

The Raymond James class action lawsuit claims the company charged an additional processing fee on security transactions that was not disclosed to customers.

The first Raymond James class action lawsuit was filed in 2015 by Jyll Brink. Brink said the financial institution hid fees on consumers, calling them “processing” or “misc.” fees.

In reality, alleged the plaintiff, the fees were “far in excess of the actual cost” of the transaction and amounted to unauthorized commissions.

An additional Raymond James class action lawsuit was filed by two other plaintiffs in 2016. The plaintiffs alleged that they were told they were using commission-free accounts with the financial institution, only to be hit with unexpected fees.

Raymond James attempted to dodge the class action but lost an argument for summary judgment in 2017. Additionally, a federal judge certified a Class of 59,000 Raymond James customers who may have paid the hidden fee.

Under the terms of the $15 million Raymond James class action settlement, the bank has agreed to also modify language to more clearly disclose fees associated with the purchase and sale of securities.

Class Members include both current and former Raymond James customers who were charged “processing” or “misc.” fees on transactions involving “Fee Investments” on Passport accounts who also signed Passport agreements. The Class period is between Feb. 11, 2011 and June 30, 3019.

“These matters collectively resulted in years of hard-fought litigation, two in-person mediation sessions, extensive pre-trial motion practice, extensive written discovery, production and review of hundreds of thousands of documents, multiple depositions, and two appeals,” notes the plaintiffs’ motion for preliminary approval of the Raymond James class action settlement. “The Parties have now reached a settlement of this litigation that they submit is fair, adequate, and reasonable.”

Class Members will be able to claim a portion of the $15 million Raymond James class action settlement. Each Class Members’ award will be based on the number and types of fees they paid. No Claim Form will be required; Class Members will be automatically be entered into the settlement should it receive final approval.

The lead plaintiff and proposed Class are represented by Darren C. Blum of Blum Law Group, Sara E. Hanley of Hanley Law PA, Eric M. Sodhi and Joshua L. Spoont of Sodhi Spoont PLLC, Lyle E. Shapiro of Herskowitz Shapiro PLLC and Manuel A. Garcia­Linares, Gary S. Betensky, Nathaniel M. Edenfield and Mark A. Romance of Day Pitney.

The Raymond James Hidden Fees Class Action Lawsuits are Brink, et al. v. Raymond James & Associates Inc., Case No. 0:15­-cv­-60334, and Wistar, et al. v. Raymond James Financial Services Inc., et al., Case No. 0:16­-cv-­60284, both in the U.S. District Court for the Southern District of Florida.

UPDATE: August 2019, the Raymond James commission fee class action settlement is now open. Click here to learn more. 

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This article is not legal advice. It is presented
for informational purposes only.