Osaic Faces New Class Action Over Cash Sweep Program Interest Rates
A new class action lawsuit has been filed against Osaic, alleging that the firm underpaid interest on customer cash sweep accounts while profiting from fees charged by banks. The plaintiffs claim that despite market rate increases, particularly following Federal Reserve actions, Osaic maintained artificially low rates for its customers' benefit but not their own. The lawsuit was filed in Arizona federal court and names Robin Nackman and Douglas Whittaker as lead plaintiffs. They argue that the firm's sweep programs failed to adjust interest rates based on economic conditions or prevailing market factors, violating contractual obligations. The suit also highlights similar ongoing legal challenges against other financial firms like Betterment and Commonwealth. Osaic has previously faced a class action in early 2025 over related issues, with some initial complaints dismissed. In response to the latest allegations, an Osaic spokesperson stated that they deny all claims and will defend themselves vigorously.
Topics: cash sweep programs class action financial services litigation