Betterment Faces Class Action Lawsuit Over Alleged Mismanagement of Cash Sweep Accounts
A class action lawsuit has been filed against Betterment by a New Jersey resident alleging that the firm moved clients' excess cash into non-interest-bearing sweep accounts, causing them to lose potential interest earnings. The plaintiff claims Betterment received compensation from banks for maintaining these balances while failing to adequately disclose this arrangement or alternatives.
Topics: Betterment cash sweep accounts class action lawsuit investment advisory