Berger Montague Selected Class Counsel in Significant Cash Sweep Lawsuits

Berger Montague Takes the Lead in Class Action Cases

On November 25, 2024, Berger Montague, a renowned national law firm specializing in plaintiff litigation, announced its recent appointment as Interim Co-Lead Counsel in two newly proposed class action lawsuits. These legal actions are targeting prominent financial institutions—UBS Financial Services Inc. and LPL Financial Holdings, Inc.—over allegations concerning their controversial cash sweep programs.

This filing follows Berger Montague's previous designation as Interim Co-Lead Counsel for a similar case against Ameriprise Financial Inc. The core issue across these lawsuits centers on the claim that the cash sweep programs improperly leverage client funds that remain uninvested, generating significant profits for these institutions while offering clients exceedingly low interest rates on their cash holdings. The collective losses faced by clients due to these practices are substantial, amounting to hundreds of millions of dollars in lost interest, as expressed by Michael Dell'Angelo, the Executive Shareholder and General Counsel of Berger Montague.

Dell'Angelo emphasized the firm's commitment to vigorously pursuing these cases, stating, "The proposed classes have experienced significant financial damage due to the inappropriate utilization of their cash. We aim to secure justice for them."

Leading the charge, Dell'Angelo collaborates with Senior Counsels Andrew Abramowitz and Alex B. Heller within the Berger Montague team, showcasing a dedicated and experienced group working at full throttle to navigate the complexities of these lawsuits.

Founded more than half a century ago, Berger Montague has established a reputation as a leader in complex civil litigation, handling a variety of practice areas including securities, antitrust, consumer protection, and employment law. The firm's headquarters in Philadelphia is complemented by various offices across major U.S. cities such as Chicago, Minneapolis, San Diego, San Francisco, and Washington, D.C. With over $60 billion recovered for its clients and classes they represent, Berger Montague emphasizes its dedication to holding corporations accountable, particularly in the realms of financial misconduct like the alleged cash sweep practices.

The lawsuits are set to gain considerable attention as they raise essential questions about the legality and ethics of cash sweep programs employed by financial institutions. Their methodology, which allows institutions to profit substantially at the expense of clients’ hard-earned money, highlights an ongoing concern in the financial services industry. The outcome of these cases could ignite broader discussions on financial transparency and client rights, potentially instituting changes that could benefit consumers nationwide.

In a legal landscape increasingly populated by complex class action suits, Berger Montague remains at the forefront of advocating for justice on behalf of everyday individuals facing unfair practices from larger entities. With their experienced attorneys at the helm, the firm aims to secure both restitution for affected clients and set legal precedents that deter similar practices in the future. It is an unfolding narrative of accountability that is poised to impact the industry significantly.

For more information on these cases and updates on the latest developments, readers are encouraged to stay tuned to announcements from Berger Montague.