MML Investors Services, LLC

This class action seeks relief on behalf of Mass Mutual’s brokerage customers who participated in Mass Mutual’s “Advantage Cash Sweep Program” or “Insight Cash Sweep Program” (collectively, “Cash Sweep Programs”).  

Under cash sweep programs, brokers provide their customers with the option to earn interest on idle cash deposited in their brokerage accounts but not yet invested. Historically, cash sweep programs have been offered as passthroughs, with brokers not charging any fees for making this option available. Prior to 2023, Mass Mutual offered customers various “core account investment vehicle” – or sweep – options, allowing customers to elect a core investment such as a money market fund.

In 2023, as the federal funds benchmark rate was climbing to a fifteen-year high, Mass Mutual changed its program and made the two Cash Sweep Programs the only options available. Not only did this mean that money market funds were no longer available as a cash sweep option, but Mass Mutual also automatically transferred all customers who had previously elected to have the money market fund as their cash sweep option into these two Cash Sweep Programs. At the same time, Mass Mutual paid dismally low interest rates in the Cash Sweep Programs.

Mass Mutual’s decision to make these two Cash Sweep Programs the only available options, and in turn pay next to nothing in interest to its clients, was driven by its desire to take all of the upside of rising interest rates for itself at its customers’ expense. As the Federal Reserve increased rates to over 5% - with returns on money market funds taking a similar path – Mass Mutual paid its clients between just .75% to 1.08%. Mass Mutual was thus able to generate huge profits by enrolling its customers in the Cash Sweep Programs that were set up to deprive its customers of the benefits of skyrocketing interest rates.

KTMC filed the complaint—the first of its kind against Mass Mutual—in September 2025 on behalf of Plaintiff Jabari Phillips and all other similarly situated Mass Mutual customers. On November 19, 2025, Mass Mutual filed a motion to dismiss, which will be fully briefed in early 2026.