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Osaic has been hit with a class action suit claiming the firm put its own profits ahead of customers in how it has handled its various cash sweep programs.
In the suit filed in Arizona federal court, Osaic customers Robin Nackman and Douglas Whittaker accused Osaic of a "dramatic underpayment of interest" to their customers, violating their "contractual, implied and/or fiduciary obligations" to the plaintiffs.
"Despite its representation to the contrary, Osaic categorically has not adjusted interest rates paid to customers based on economic or prevailing market factors, but rather has kept the sweep rates artificially depressed as to reap substantial profits for itself," the complaint read.
In the complaint, Nackman and Whittaker argue that typically, uninvested cash from customer accounts is moved (or "swept") into interest-bearing accounts, generating client returns.
#osaic #wealthmanagement #whittaker #suit
Osaic has been hit with a class action suit claiming the firm put its own profits ahead of customers in how it has handled its various cash sweep programs.
In the suit filed in Arizona federal court, Osaic customers Robin Nackman and Douglas Whittaker accused Osaic of a "dramatic underpayment of interest" to their customers, violating their "contractual, implied and/or fiduciary obligations" to the plaintiffs.
"Despite its representation to the contrary, Osaic categorically has not adjusted interest rates paid to customers based on economic or prevailing market factors, but rather has kept the sweep rates artificially depressed as to reap substantial profits for itself," the complaint read.
In the complaint, Nackman and Whittaker argue that typically, uninvested cash from customer accounts is moved (or "swept") into interest-bearing accounts, generating client returns.
#osaic #wealthmanagement #whittaker #suit
2 hours ago
