CLASS ACTIONS FILED FOR CUSTOMERS NOT PAID A “REASONABLE INTEREST RATE” ON THEIR CASH AT THEIR BROKERAGE FIRM

Multiple Class Actions have been filed alleging that investors were not paid a “reasonable interest rate” on their cash in their managed accounts have been filed. Merrill Lynch, LPL Financial, Morgan Stanley and Wells Fargo, all well-known brokerage firms, were sued by investors in class actions alleging they underpaid their customs a “reasonable interest rate” on their cash in their accounts. “In my opinion, brokerage firms that recommend a type of account or an investment they owe a duty to act in their best interests, and when they charge a management fee, they owe a fiduciary duty to the customer, and that includes paying a “reasonable rate” of interest on their cash, and not sweeping into another account they control where they earn profits for themselves at the expense of the customer” said Jeffrey Sonn, Esq., Managing Shareholder of Sonn Law Group PA, a nationally known law firm representing customers against brokerage firms and finanical advisors. “One brokerage firm paid as little as 0.05% interest on a cash sweep account, when market rates on cash investments were 40 times that rate at 2%. “In my mind, it is hard not to see that any brokerage firm that was hiding the fact they were paying an unreasonable rate of interest to their customers on cash was a breach of duty to their customer,” added Sonn. “For some clients, over time, they lost real money and the brokerage firms took advantage of them, I believe,” added Sonn.

Sonn Law Group PA is a nationally known law firm representing investors, individuals and companies, who have been harmed by the actions of broker dealers, finanical advisors, banks, financial planners and insurance companies. If your account was subject to a cash sweep that resulted in payments of interest far below market interest rates, you may have a claim for damages. For free information, contact Sonn Law Group PA at 833-912-3000.

Sonn Law Group PA has represented individuals, trusts, estates, companies and institutions nationwide in class actions, FINRA arbitrations and court. Our attorneys have obtained multimillion-dollar recoveries for victims of investment fraud, Ponzi Schemes, negligence, unsuitable investments, and other claims against some of the largest companies on Wall Street and around the country. Our lawyers have brought cases against many well known brokerage firms. Brokerage firms in general are subject to SEC Reg BI that requires them to act in their “customers’ best interests” as well as other rules and regulations issued by the Financial Regulatory Authority and the SEC, including LPL Financial LLC, Advisor Group
Lincoln Financial Network, Northwestern Mutual, Ameriprise Financial Services, LLC, MML Investors Services, LLC, Raymond James Financial Services Inc.,,Royal Alliance Associates Inc., Equitable Advisors, LLC
Cambridge Investment Research, Inc., Avantax Investment Services, Inc., Securities America Inc., Transamerica Financial Advisors, Inc., Woodbury Financial Services, Commonwealth Equity Services, LLC dba-Commonwealth Financial Network, Atria Wealth Solutions, Park Avenue Securities LLC
Principal Securities, Inc., Kestra Financial, Inc., SagePoint Financial Inc., Waddell & Reed Financial Advisors
Securian Financial Services Inc., The Leaders Group, Ameritas Investment Company/Ameritas Advisory Services, Lincoln Investment Planning, LLC, Morgan Stanley, UBS, Wells Fargo, LPL, Raymond James, JP Morgan Chase, Goldman Sachs, Lincoln Financial, Advisor Group, MML investor Services, Royal Alliance Associates, Equitable Advisors, Securities America, Commonwealth Financial Network, Park Avenue Securities, Northwestern Mutual, and many others.
Jeff Sonn served as a legal commentator for CNBC’s “On the Money” TV show as an expert on Ponzi Schemes during the Madoff case, is the author of “Ponzi Schemes, Picking up the Pieces of a Fallen House of Cards” and appeared on the CNBC Show “American Greed,” explaining a billion dollar Ponzi scheme.
Sonn Law Group PA represents investors nationwide, in all 50 states.

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