Merrill Lynch

Merrill Lynch

Case Caption: In re Merrill Lynch Cash Sweep Programs
Court: United States District Court for the Southern District of New York
Case Number: 1:23-cv-10768
Judge: Honorable Margaret M. Garnett
Plaintiff: James Bertonis, Robert J. Campton Jr., Margaret McCrary
Defendant: Bank of America Corporation; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Bank of America, N.A.; Managed Account Advisors LLC

This class action seeks relief on behalf of Merrill Lynch’s brokerage customers who participated in its Sweep Programs (“Programs”). On April 8, 2025, the Court appointed Kessler Topaz as interim co-lead counsel for the Putative Classes.

Pursuant to the Programs, Merrill transfers customers’ uninvested cash to interest-bearing accounts at its affiliate, Bank of America. In reality, the Programs are a sham. Defendants paid Plaintiffs and members of the class near-zero interest rates; most customers receive 0.01%. Meanwhile, market interest rates have jumped: Merrill’s competitors pay rates approaching 4% on swept cash; the federal one-month treasury rate has exceeded 5%; and the benchmark federal funds rate has exceeded 4%. Rather than pass these market rates on to its customers, Defendants pocket the spread. Based on these facts, Plaintiffs allege Defendants violated various contractual, statutory, and common law duties.

Defendants have moved to dismiss Plaintiffs’ complaint, which is fully briefed, and the parties are proceeding with discovery.

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