National investment loss lawyers KlaymanToskes is investigating LPL Financial on behalf of investors whose cash positions were negligently placed into low-yield “sweep accounts,” despite the availability of significantly higher-yielding alternatives. LPL Financial allegedly defaulted client cash into its LPL Deposit Cash Account (DCA) and LPL Insured Cash Account (ICA), which paid as little as 0.10%, instead of allocating funds to more suitable options.
LPL’s failure to act in the best interest of its clients allegedly resulted in millions of dollars in lost interest income for affected investors. KlaymanToskes is currently representing investors seeking to recover losses tied to low-interest-bearing accounts and negligent cash management by brokerage firms and their financial advisors.
If you had $1,000,000 or more placed into low-interest bearing sweep accounts, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
From 2020 through 2024, LPL Financial allegedly funneled client cash into its Deposit Cash Account (DCA) and Insured Cash Account (ICA) sweep programs, which paid as little as 0.10% interest—even as market alternatives like money market funds, CDs, and U.S. Treasuries offered 4% to 5% or more. According to a federal class action lawsuit, LPL failed to secure reasonable interest for its clients, prioritizing its own profits over fiduciary duties.
Rather than recommending competitive, higher-yielding options, LPL defaulted client cash into affiliated bank accounts, profiting on the spread between what it paid clients and what it earned loaning out those same funds. The firm allegedly made more money when clients’ uninvested cash was placed in these low-yield programs.
The lawsuit further alleges that LPL:
Investors should know that class-actions may take many years to resolve, and that payouts are generally heavily undervalued. KlaymanToskes previously conducted a detailed study of securities arbitration versus class action and concluded that Financial Industry Regulatory Authority (FINRA) arbitration claims traditionally obtain an overall higher rate of recovery as opposed to participating and waiting for any recovery in a class action lawsuit.
KlaymanToskes is currently representing investors in claims related to negligent cash management practices and low-interest sweep accounts at major brokerage firms. Investors—especially retirees and high-net-worth individuals—may have suffered significant lost interest income as a result of being placed in low-yield programs like LPL’s Deposit Cash Account (DCA) and Insured Cash Account (ICA) instead of higher-yielding options.
If you held in excess of $1,000,000 at LPL Financial and received below-market interest rates in sweep accounts, you are entitled to pursue a financial recovery through FINRA arbitration as opposed to participating and waiting for any recovery in a class action lawsuit. Contact securities attorney Steven D. Toskes at (888) 997-9956 or email investigations@klaymantoskes.com for a free and confidential consultation to discuss your recovery options.