Cases & Investigations
Valelly v. Merrill Lynch, Pierce, Fenner & Smith, Inc. - Sweep Accounts Consumer Litigation

Overview

Overview Case Updates Contact Us About This Case

Type: Current Cases

Case Number: 1:19-cv-07998-VEC

Class Period: January 2017 – March 2020

Defendant(s): Merrill Lynch, Pierce, Fenner & Smith, Inc.

Court: United States District Court for the Southern District of New York

This action alleges that Merrill Lynch, Pierce, Fenner & Smith, Inc. breached its contractual obligation to pay a “reasonable” rate of interest on cash held in online retirement accounts. From 2017 to 2020, Merrill defaulted customers into low yielding “sweep accounts,” which paid an approximate 0.14% yield on cash balances, far below the federal funds rate, which exceeded 2.40%. The lawsuit seeks damages on behalf of retirement customers.

Discovery has completed and on September 27, 2024, the Court denied, in substantial part, Merrill’s motion to exclude the plaintiff’s expert’s methodologies and opinions concluding that Merrill’s sweep rate was not reasonable and that the putative class suffered damages as a result. The Court has ordered that the parties file summary judgment motions by November 27, 2024.

The case is Sarah Valelly v. Merrill Lynch, Pierce, Fenner & Smith Inc., Case No. 1:19-cv-07998-VEC (S.D.N.Y.), pending before United States District Judge Valerie E. Caproni.

Contact Instructions

Phone: Robert C. Finkel - (212) 451-9620
Phone: Adam Blander - (212) 451-9667
Email: Outreach@wolfpopper.com
Contact Us About This Case

Court Denies Merrill’s Motion to Exclude Expert Testimony

Case Update | 10/24/2024

Wolf Popper LLP Files Class Certification Motion in Merrill Lynch Sweep Account Litigation

Case Update | 3/11/2022

Court Sustains Wolf Popper LLP’s Complaint Against Merrill Lynch in “Sweep” Account Class Action

Case Update | 1/25/2021

Wolf Popper LLP Files Class Action Complaint Against Merrill Lynch, Pierce, Fenner & Smith Inc. Challenging Merrill’s Low-Interest Sweep Account Practices

Case Update | 8/27/2019

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Cases & Investigations Valelly v. Merrill Lynch, Pierce, Fenner & Smith, Inc. - Sweep Accounts Consumer Litigation

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Valelly v. Merrill Lynch, Pierce, Fenner & Smith, Inc. - Sweep Accounts Consumer Litigation