Morgan Stanley Cash Sweep Class Action Lawsuit Investigation

Morgan Stanley allegedly gives clients low interest rates on un-invested cash while earning higher fees for itself.

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Gibbs Law Group is investigating a potential class action lawsuit on your behalf.

Morgan Stanley advisory or brokerage client?

Potential Morgan Stanley Cash Sweep Lawsuit

Clients claim that Morgan Stanley breached the contract with customers and its fiduciary duty by paying them low interest rates on their un-invested cash while ensuring that Morgan Stanley earned significant fees for itself through its cash sweep “Bank Deposit Program.” We are investigating a potential class action lawsuit on behalf of Morgan Stanley Brokerage and Investment Advisory Account holders who may have had un-invested cash automatically “swept” from their accounts for unreasonably low returns, as little as .01%.

What is the Morgan Stanley Bank Deposit Program?

The Morgan Stanley Bank Deposit Program is a type of “cash sweep” program for Morgan Stanley advisory and brokerage clients. It is presented as a way for customers to automatically earn interest on uninvested cash funds from their advisory or brokerage accounts to minimize risk and maximize returns. If you have an advisory or brokerage account with Morgan Stanley, then you may be enrolled in its cash sweep Bank Deposit Program.

Invest with Morgan Stanley?

Morgan Stanley Cash Sweep Investigation

Morgan Stanley recently announced that the SEC is investigating whether its Bank Deposit Program complies with investment advisory regulations. News also broke of customers alleging that they were automatically enrolled in the cash sweep program and unable to select options which might have offered them better returns and lower rates. Instead, Morgan Stanley allegedly placed uninvested cash in banks paying as little as 0.01% interest to customers while Morgan Stanley earned significant fees for itself.

About Us

Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”