The Details of PNC Retirement Account Cash Sweep Lawsuit
There is a serious lawsuit against PNC financial services. The lawsuit is still ongoing and promises a serious legal battle between a company and a group of individuals. The lawsuit is yet another manifestation of how companies exploit people. The good thing is that some of these companies are now getting caught up with and lawsuit like this one is perhaps the greatest warning and caution that client exploitation is a risky affair that must only be attempted at one’s peril. That aside, this text takes a look at pnc retirement account cash sweep lawsuit and some of the details about it.
What is The Pnc Retirement Account Cash Sweep Lawsuit All About?
The Pnc retirement account cash sweep lawsuit is a class action lawsuit which was filed against the Pnc financial services. The lawsuit alleges that PNC through its cash sweep program exploited its retirement accounts investors for its own selfish financial growth. The lawsuit in one of the allegation contained in alleges that PNC through its cash sweep program made the selfish decision to automatically sweep any uninvested cash in its holding brokerage accounts into interest bearing account held at PNC bank.
The lawsuit further alleges that PNC interest rates charged on swept cash were much lower compared to the current market interest rates. This was particularly the case in 2018 going all the way to 2019 and again the same happened in 2022. The other allegation in this lawsuit against PNC capital is that the company did act as a fiduciary agent for retirement account holders.
However, instead of the company acting in good faith, it deliberately chose to breach these by selecting some of the low yield accounts at one of its own affiliates which is the PNC Bank. This was so wrong and a huge mistake committed by the institution. According to the lawsuit PNC should have sought competitive rates for its clients and not act the way they did.
The last allegation in the lawsuit is the allegation of unjust enrichment where the plaintiff in the lawsuit alleges that PNC profited from their client’s funds unfairly. The plaintiff argue that PNC did this by creating a huge profit difference between higher interest rates they got by investing client’s cash in other places and the low interest rates they ended paying to their clients afterwards.
The core of the pnc retirement account cash sweep lawsuit is PN prioritizing its own interests which were its own interests over the best interests of the clients they were serving. It is important to point out that this is an ongoing lawsuit and some details about it are yet to come. PNC capital is yet to issue a statement on this lawsuit either denying or accepting it. More details about the lawsuit like the compensation demanded by plaintiff in the lawsuit and the possible directions the court is likely to issue.
Final Thoughts
The pnc retirement account cash sweep lawsuit is one of the lawsuits in which a company has taken full advantage of its clients. The lawsuit shades more light into some of the dirty games some companies mess with their clients and their resources often enriching themselves from the games.
