Merrill Edge retirement account cash sweep settlement

Who may be eligible

If you held a Merrill Edge self-directed retirement account whose cash was swept through the Retirement Asset Savings Program at any time between December 15, 2016 and March 15, 2020, you may be covered by a $39,000,000 settlement. There is no claim form: the notice says payment is automatic, and that only class members whose pro rata share comes to $10 or more will be paid. People who no longer hold a Merrill Edge retirement account have until March 26, 2027 to choose payment by electronic transfer rather than a check, and objections or exclusions are due February 19, 2027. Taking part costs nothing and the official settlement website is free to use.

The eligibility period on the official materials is December 15, 2016 – March 15, 2020. The notice states no state limit, so it is usually nationwide. Covered: Merrill Edge self-directed retirement accounts, Retirement Asset Savings Program.

Only the official administrator or agency decides who is paid, and its own page is the authority on who is covered.

How much it may pay

Share of a $39M fund. Every figure here is an estimate from public materials, not a guarantee: many settlements pay pro rata or only after a claims review, so final amounts commonly land well below the advertised maximum.

There is no claim form. The notice says payment goes automatically to class members whose pro rata share comes to $10 or more, worked out month by month from the account's cash balance and the gap between the interest the plaintiff's expert calls reasonable and the rate actually paid. People who still hold a Merrill Edge retirement account are paid into it; people who closed theirs get a check or an electronic transfer, and have until March 26, 2027 to choose the transfer on the settlement website. The arithmetic divides the fund rather than estimating anyone's losses.

A $39,000,000 settlement fund. Before cash payments are worked out it pays notice and administrative costs, attorneys' fees and litigation expenses awarded by the court, any service award to the plaintiff, and taxes. Uncashed or undeliverable payments are redistributed pro rata where that can be done cost-effectively, and anything left after that goes to a charitable organisation the court approves.

What the deadline is

There is no claim deadline because there is nothing to file. The official page says when payments go out and how long a check or digital payment stays valid once sent.

The deadline to opt out or object is February 19, 2027.

The court's fairness hearing is set for March 12, 2027; payments do not go out until the settlement is finally approved and any appeals are resolved.

The notice says the court will consider whether to approve the settlement at a hearing on March 12, 2027, that the hearing date and time may change, and that payments follow approval. No distribution date is published.

What proof is needed

No claim to file — payments are sent automatically.

The administrator pays consumers it has already identified, so the useful step is to make sure it can reach you, not to file anything. Anyone offering to file this for you, for a fee, is selling you nothing.

How to file for free

There is no claim form. The official program page, run by JND Legal Administration, explains who is being paid and how to reach the administrator if a payment is expected and has not arrived.

Never give a Social Security number, bank login or card number to a site that is not the official administrator or agency page.

Why this case happened

Valelly sued Merrill Lynch in August 2019, saying it broke the Merrill Edge Self-Directed Investing Client Relationship Agreement by sweeping idle cash in self-directed retirement accounts into deposit accounts at Merrill-affiliated banks through the Retirement Asset Savings Program, which paid less than a reasonable rate of interest. Merrill denies every claim and denies any wrongdoing. The court had certified the class before the parties settled, with trial set for October 2026; they settled instead to deliver benefits more quickly and avoid the risk of trial and appeals.