JPMorgan Unit Must Defend Lawsuit Over ‘Cash Sweep’ Program

J.P. Morgan Securities LLC must defend some proposed class action claims challenging how it managed the uninvested cash its customers held in brokerage and retirement accounts.

At issue in the lawsuit is the interest rate applied to JPMS client cash balances in the JP Morgan Cash Sweep Program. The customers sued alleging that through the program their uninvested cash was swept into an interest-bearing bank deposit account that paid between .01% and .03% interest when the prevailing market interest rate fluctuated from close to zero percent to a high of 5.33%. The discrepancy allegedly enabled JPMorgan and its affiliates to ...