Oppenheimer & Co. agreed to pay $70 million to settle a customer class action alleging it improperly pocketed interest from its “cash sweep” account program.
The deal should be preliminarily approved as fair and adequate, the investment fund leading the suit told the US District Court for the Southern District of New York in a filing Wednesday. The settlement amount represents nearly 13% of the $557 million estimated maximum recovery in the case, Liberty Capital Group said in its approval request.
Cash sweep programs have created litigation headaches for their operators, with several recent rulings favoring account holders. Allegations ...
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