NEW YORK, Aug. 29, 2019 /PRNewswire/ -- Wolf Popper LLP has filed a class action complaint in the U.S. District Court for the Southern District of New York (Case No. 1:19-cv-07998) against Merrill Lynch, Pierce, Fenner & Smith, Inc., a wholly-owned indirect subsidiary of Bank of America Corporation (NYSE: BAC). The lawsuit challenges Merrill's practice of defaulting customers into its lowest yielding "sweep account," which currently pays a paltry 0.05% annual percentage yield on cash balances. Merrill's interest rates are dramatically below competitors' rates of approximately 2.0%. Moreover, Merrill fails to follow SEC rules in initiating client accounts, which require clients' "prior written affirmative consent" before Merrill sweeps their cash.
The lawsuit, among other things, seeks to compel Merrill to adopt transparent disclosure concerning cash investments and pay investors reasonable, market-based interest on cash balances. The lawsuit also seeks payment of back interest.
Interested persons may contact Robert C. Finkel for more information concerning the litigation.
SOURCE Wolf Popper LLP