Bank of America has agreed to pay $39,000,000 to settle claims that its Merrill Lynch unit paid brokerage customers almost nothing on idle cash.
The proposed deal was filed in Manhattan federal court and covers Merrill Edge online accounts, reports Reuters.
Merrill Edge is Bank of America’s online brokerage.
Plaintiffs say the firm automatically swept cash into deposit accounts that paid 0.05% to 0.14% a year while other brokerages paid about 2% over the same stretch.
They say those rates broke agreements that called for a reasonable rate of interest.
The class covers Merrill Edge account holders from December 15th of 2016 to March 15th of 2020.
The deal avoids a trial that had been set for mid-October.
It still needs approval from U.S. District Judge Valerie Caproni.
Merrill Lynch denies any wrongdoing.
Similar sweep-account cases have produced mixed results, including a recent $70,000,000 settlement with Oppenheimer & Co.
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