Cash Sweep Litigation
Brokerage Cash Sweep Litigation
126 predicted defendants identified in Rain Intelligence for this trend — companies that have not yet been sued, but are on plaintiffs’ firms’ radar.
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Rain Intelligence customers see the full list of companies under pre-filing investigation by plaintiffs’ firms — plus the AI-forecasted defendants most likely to be sued next, with case theories, evidence summaries, and plaintiff-firm activity. This public preview shows only what is already on the docket.
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Understanding the trend
What is this trend?
A 'cash sweep' program automatically moves uninvested customer cash in a brokerage account into an interest-bearing deposit account — usually at the broker's own affiliated bank or a partner bank. The lawsuits allege brokerages paid customers a tiny fraction of prevailing market rates on that swept cash (often well under 0.5% while money-market and Treasury yields exceeded 4-5%), and pocketed the spread. Plaintiffs claim this breached fiduciary duties, contracts, and the implied covenant of good faith, and was inadequately disclosed.
What caused it
The 2022-2024 rapid rise in interest rates widened the gap between what brokerages earned on swept cash and the near-zero rates they paid customers. As the spread became conspicuous, plaintiffs' firms and the SEC began scrutinizing sweep practices, triggering a cascade of near-identical complaints against major wirehouses, banks, and fintech brokers.
Practices driving the lawsuits
- Defaulting customers into bank-deposit sweep vehicles paying far below market rates
- Sweeping cash to the broker's own affiliated bank, earning a spread on customer funds
- Inadequate or buried disclosure of sweep rates and the broker's conflict of interest
- Failing to act in customers' best interest / breaching fiduciary and contractual duties
- Retaining the interest-rate spread between market yields and rates paid to customers
Filed cases
Public court records · filterable + sortable
| Filed▼ | Defendant | Court | Firm | Industry | Theory | Complaint |
|---|---|---|---|---|---|---|
| Sep 1, 2026 | TIAA-CREF Individual & Institutional Services, LLC; TIAA Trust, N.A. | Southern District of New York | EDELSBERG LAW, P.A. | Financial services and banking | Below-Market Interest Rate | View |
| Aug 3, 2026 | Avantax Advisory Services, Inc.; Avantax Investment Services, Inc.; National Financial Services LLC | Northern District of Texas | Shamis & Gentile, P.A. | Financial services and banking | Breach of Fiduciary Duty | View |
| Jul 10, 2026 | Betterment LLC; Betterment Securities LLC | Southern District of New York | Edelsberg Law, P.A. | Financial services and banking | Below-Market Interest Rate | View |
| Jun 22, 2026 | Commonwealth Equity Services LLC | District of Massachusetts | Lynch & Pine | Financial services and banking | Breach of Fiduciary Duty | View |
| Jun 9, 2026 | Janney Montgomery Scott LLC | Eastern District of Pennsylvania | Milberg, PLLC | Financial services and banking | Below-Market Interest Rate | View |
| Jun 5, 2026 | SoFi Securities, LLC | Northern District of California | Edelsberg Law | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Jun 3, 2026 | Cetera Financial Group, Inc. | Southern District of California | Edelsberg Law | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Sep 22, 2025 | Mml investors services, llc | Massachusetts District Court | Lynch And Pine Attorneys At Law | Financial Services | Breach of Fiduciary Duty+3 | View |
| Sep 19, 2025 | Mml investors services, llc | Massachusetts District Court | Lynch And Pine Attorneys At Law | Financial Services | Breach of Fiduciary Duty+4 | View |
| Jun 18, 2025 | Stifel, Nicolaus & Co., Inc. | Missouri Eastern District Court | Simmons Hanly Conroy | Financial Services | Breach of Fiduciary Duty+3 | View |
| Jun 10, 2025 | Edgeco Holdings, L.P. | Pennsylvania Western District Court | Law Office Of Alfred G Yates | Financial Services | Breach of Fiduciary Duty+4 | View |
| Jun 6, 2025 | Oppenheimer Holdings Inc. | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial Services | Breach of Fiduciary Duty+4 | View |
| May 30, 2025 | Royal Bank Of Canada | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial Services | Breach of Fiduciary Duty+4 | View |
| May 5, 2025 | Robinhood Markets, Inc. | California Northern District Court | Robbins Geller Rudman And Dowd | Financial Services | Breach of Fiduciary Duty+4 | View |
| Apr 4, 2025 | Charles Schwab & Co. Inc. | Superior Court Of The State Of California For The County Of Los Angeles | The Burke Law Firm And The Grant Law Firm | Financial Services | Breach of Fiduciary Duty+4 | View |
| Mar 14, 2025 | Stifel Financial Corp. | Missouri Eastern District Court | Robbins Geller Rudman And Dowd And Abraham Fruchter And Twersky | Financial Services | Breach of Fiduciary Duty+4 | View |
| Feb 25, 2025 | Bank of America Corporation | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial Services | Breach of Fiduciary Duty+4 | View |
| Feb 13, 2025 | E*Trade Securities Llc | New Jersey District Court | Seeger Weiss | Financial Services | Breach of Fiduciary Duty+3 | View |
| Jan 29, 2025 | Pnc investments, llc | Pennsylvania Western District Court | Kopleowitz Ostrow Ferguson Weiselberg Gilbert | Financial Services | Breach of Fiduciary Duty+3 | View |
| Jan 23, 2025 | Bank of America Corporation | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial Services | Breach of Fiduciary Duty+4 | View |
| Jan 15, 2025 | Td ameritrade, inc. | Nebraska District Court | Jacobson Phillips | Financial Services | Breach of Fiduciary Duty+4 | View |
| Jan 6, 2025 | Morgan Stanley | New York Southern District Court | Johnson Fistel | Financial Services | Breach of Fiduciary Duty+4 | View |
| Dec 31, 2024 | Ameriprise Financial Inc. | Minnesota District Court | Robbins Geller Rudman And Dowd | Financial Services | Breach of Fiduciary Duty+4 | View |
| Dec 24, 2024 | Td ameritrade, inc. | Nebraska District Court | Shamis And Gentile | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Dec 21, 2024 | Morgan Stanley | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Dec 12, 2024 | Jpmorgan chase & co. | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Dec 11, 2024 | Jpmorgan chase & co | New York Southern District Court | Dicello Levitt | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Dec 9, 2024 | Raymond James Financial, Inc. | Florida Middle District Court | Edelsberg Law | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Dec 6, 2024 | The Charles Schwab Corporation | New York Southern District Court | The Grant Law Firm | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Dec 4, 2024 | Pnc investments, llc | Pennsylvania Western District Court | Kopelowitz Ostrow ; Edelsberg Law | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Nov 22, 2024 | Wells Fargo & Company | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Nov 20, 2024 | Morgan Stanley | New York Southern District Court | Robbins Geller Rudman And Dowd And Law Office Of Alfred G Yates | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Nov 13, 2024 | Merrill Lynch | New York Southern District Court | Carella Byrne Cecchi Brody Agnello P C | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 29, 2024 | RBC Capital Markets, LLC | New York Southern District Court | Glancy Prongay And Murray | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 25, 2024 | Robinhood Markets, Inc. | California Northern District Court | Kessler Topaz Meltzer And Check | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Oct 24, 2024 | The Charles Schwab Corporations | Florida Middle District Court | Edelsberg Law | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 14, 2024 | Ameriprise Financial, Inc. | California Central District Court | Kopelowitz Ostrow Ferguson Weiselberg Gilbert | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 14, 2024 | Wells Fargo & Company | California Central District Court | Kopelowitz Ostrow Ferguson Weiselberg Gilbert | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 11, 2024 | Wells Fargo & Co and Wells Fargo Clearing Services | New York Southern District Court | Robbins Geller Rudman And Dowd And Abraham Fruchter And Twersky | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 11, 2024 | Bank of America Corporation | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Oct 11, 2024 | Morgan Stanley and Morgan Stanley Smith Barney LLC | New York Southern District Court | Robbins Geller Rudman And Dowd | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Sep 30, 2024 | The Charles Schwab Corporation | California Central District Court | Bernstein Litowitz Berger And Grossmann And Buzin Law | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Sep 26, 2024 | LPL Financial Holdings Inc. and LPL Financial LLC | California Southern District Court | — | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Sep 24, 2024 | Wells Fargo & Company | California Northern District Court | Bernstein Litowitz Berger And Grossmann And Buzin Law | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Sep 19, 2024 | Jp morgan chase & co. | California Central District Court | Edelsberg Law | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Sep 11, 2024 | Pnc Investments, Llc; Pnc Financial Services Group, Inc.; And National Financial Services, Llc | Massachusetts District Court | Lynch Carpenter | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Sep 6, 2024 | Charles Schwab & Co., Inc. | Florida Middle District Court | Simmons Hanly Conroy | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Sep 3, 2024 | Ubs Financial Services Inc. | New York Southern District Court | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Aug 28, 2024 | The Charles Schwab Corporation | California Central District Court | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Aug 27, 2024 | Raymond James Financial Inc. | Florida Middle District Court | Steinlaw Florida | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Aug 26, 2024 | Raymond James Financial Inc. | Florida Middle District Court | Simmons Hanly Conroy | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Aug 23, 2024 | JPMorgan Chase & Co. and J.P. Morgan Securities LLC | New York Southern District Court | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Aug 21, 2024 | Ameriprise Financial, Inc.; Ameriprise Financial Services, LLC; Ameriprise Financial Services, Inc.; American Enterprise Investment Services, Inc. | New York Southern District Court | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Aug 21, 2024 | Ameriprise Financial, Inc.; Ameriprise Financial Services, LLC; Ameriprise Financial Services, Inc.; American Enterprise Investment Services, Inc. | United States District Court Minnesota | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Aug 20, 2024 | LPL Financial LLC | California Southern District Court | Gibbs Law Group | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Jul 31, 2024 | LPL Financial Holdings Inc. and LPL Financial LLC | California Southern District Court | Simmons Hanly Conroy | Financial services and banking | Breach of Fiduciary Duty+2 | View |
| Jul 30, 2024 | Wells Fargo & Company | California Northern District Court | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Jul 29, 2024 | Ameriprise Financial, Inc., et al. | Minnesota District Court | Gustafson Gluek | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Jul 17, 2024 | LPL Financial LLC | California Southern District Court | Berger Montague | Financial services and banking | Breach of Fiduciary Duty+4 | View |
| Jun 14, 2024 | Morgan Stanley | New York Southern District Court | Williams Dirks Dameron | Financial services and banking | Breach of Fiduciary Duty+3 | View |
| Dec 11, 2023 | — | United States District Court Maine | Wolf Popper | Financial services and banking | Breach of Fiduciary Duty+2 | View |
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