Oppenheimer Cash Sweep Settlement: $70 Million Over Lower ABD Interest Rates

Oppenheimer & Co. and its affiliate, Oppenheimer Asset Management, offer an Advantage Bank Deposit (ABD) Program that “sweeps” customer cash into a deposit arrangement designed to earn interest. A class action—Liberty Capital Group v. Oppenheimer & Co. Inc.—alleged that during the period from March 17, 2022 through May 22, 2026, the company credited ABD customers with interest rates that were lower than what the agreements and expected market-based rate calculations required, effectively understating what participants were owed. The proposed settlement sets up a $70 million cash fund for eligible customers (excluding Oppenheimer’s insiders), where payments are based on each claimant’s “Notional Claim,” roughly the interest-rate shortfall computed daily across the class period. The lawsuit was filed to challenge the alleged gap between promised/obligated interest and what was actually paid, and its significance lies in the fact that it converts that dispute into a defined, court-supervised compensation process rather than leaving customers to pursue individual claims. Claimants are not promised a fixed amount; instead, each eligible person receives a pro rata share of the settlement fund after approved attorneys’ fees, expenses, and taxes, and the filing requires submitting a properly completed claim form by September 17, 2026 (with requests to exclude or object due August 27, 2026). More broadly, cases like this reflect heightened scrutiny of how financial firms market and administer deposit and cash-management products—especially where interest crediting mechanics, disclosure accuracy, and contract compliance are central—and they echo patterns seen in other securities, banking, and consumer-protection disputes that can involve state-law theories (like New York’s consumer-deception statute) alongside contract claims.