MDL Docket Sought for ‘Cash Sweep’ Unjust Enrichment Actions

WASHINGTON, D.C. — The Judicial Panel on Multidistrict Litigation has been asked to create an MDL docket for 21 class action lawsuits accusing financial services companies of failing to pay or secure reasonable interest rates for customers participating in their “cash sweep” programs.

In an Oct. 30 motion, plaintiffs in the actions say consolidation in the U.S. District Court for the Southern District of New York is appropriate because defendants engaged in the same or substantially similar misconduct related to the cash sweep programs.

According to the motion, cash sweep programs automatically “sweep” uninvested customer cash balances into interest-bearing deposit …