<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=4GTClU_0vjCyJEM00" alt="https://img.particlenews.com/image.php?url=4GTClU_0vjCyJEM00" width="1200" height="800" ><figcaption>(Photo Credit: JHVEPhoto/Shutterstock)</figcaption></figure><h2>PNC class action lawsuit overview:</h2><ul><li>Who: Plaintiff Manuel Vallin filed a class action lawsuit against PNC Investments LLC, PNC Financial Services Group Inc. and National Financial Services LLC.</li><li>Why: Vallin claims that PNC Investments allegedly sweeps customers’ uninvested cash into bank accounts that pay a “paltry” interest rate, enabling the defendants to generate “massive revenues” for themselves.</li><li>Where: The PNC class action lawsuit was filed in Pennsylvania federal court.</li></ul>A new class action lawsuit alleges that PNC Investments’ cash sweep accounts are not invested according to investors’ best interests, in violation of the bank’s contractual obligations.Plaintiff Manuel Vallin alleges PNC Investments LLC (PNCI) automatically enrolled him in its cash sweep program, causing his uninvested cash to be deposited with PNC Bank, which allegedly “pays low and unreasonable rates of return.”Vallin says the defendants pay customers a “pittance” while generating “massive revenues for themselves” through the PNC cash sweep program.Cash sweep accounts are linked to brokerage accounts and “sweep” uninvested cash into an interest-bearing account, the PNC class action lawsuit explains.<h2>PNC cash sweep accounts pay ‘paltry’ interest rates, plaintiff claims</h2>Vallin notes the Federal Fund rates set by the Federal Open Market Committee were increased significantly in 2022. With this rate increase, Vallin says PNC should have been able to negotiate higher rates of return on uninvested cash.However, PNCI negotiates PNC cash sweep accounts that pay less than reasonable interest rates to customers, enabling it to keep more money for itself, Vallin alleges.He points to the PNCI brokerage agreement, which says the brokerage company is obligated under federal law to provide customers with interest rates “believed to be fair and reasonable” and “negotiated at arm’s length” for its PNC cash sweep program because it includes retirement accounts.Since 2023, PNC has paid “paltry” interest rates, Vallin says. The PNC cash sweep account interest rates reportedly ranged from 0.05% to 1.55%, while the national average rate for a savings account was reportedly 0.46%.“While PNCI customers received artificially and unreasonably low rates, defendants received a larger share of the spread at PNCI customers’ expense,” the PNC class action lawsuit says.Vallin asserts claims for breach of fiduciary duty, gross negligence, breach of the implied covenant of good faith and fair dealing, breach of contract and unjust enrichment.A recent Ameriprise class action lawsuit alleges its cash sweep program unfairly benefits the bank instead of its customers.Are you enrolled in a PNC cash sweep program? Tell us about your experience in the comments.Vallin is represented by Gary F. Lynch and Connor P. Hayes of Lynch Carpenter LLP and Eric H. Gibbs, Rosemary M. Rivas, Rosanne L. Mah and Brian E. Johnson of Gibbs Law Group LLP.The PNC cash sweep class action lawsuit is Manuel Vallin v. PNC Investments LLC, et al., Case No. 2:24-cv-01295-KT, in the U.S. District Court for the Western District of Pennsylvania.Read About More Class Action Lawsuits &amp; Class Action Settlements:We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.</div></body>

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PNC Investments breached contractual duties with cash sweep accounts, class action claims

Who: Plaintiff Manuel Vallin filed a class action lawsuit against PNC Investments LLC, PNC Financial Services Group Inc. and National Financial Services LLC. Why: Vallin claims that PNC Investments allegedly sweeps customers’ uninvested cash into bank accounts that pay a “paltry” interest rate, enabling the defendants to generate “massive revenues” for themselves.