What is this Lawsuit about?
Plaintiff alleges that Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill”) failed to pay a reasonable rate of interest on cash balances in customers’ Merrill Edge self-directed retirement accounts automatically swept into deposit accounts at Merrill-affiliated banks through the Retirement Asset Savings Program (“RASP”).
What is the current status of the Settlement?
On October 7, 2026, the U.S. District Court granted preliminary approval of the Settlement resolving this action and set a hearing for March 12, 2027 to determine whether to finally approve the Settlement and whether to approve the requests for attorneys’ fees and expenses and the payment of a service award to the Class Representative. Pursuant to the Court's Preliminary Approval Order, notice of the Settlement will be disseminated to class members by December 4, 2026. A copy of the Stipulation of Settlement and the Preliminary Approval Order are available on the Important Documents page.
What can I get in the Settlement?
If you are a Class Member, a payment will be made into your existing Merrill Edge retirement account, or by check or electronic transfer if you no longer maintain your account. There is no need to file a claim. Class Members who no longer maintain Merrill Edge retirement accounts are strongly encouraged to choose to receive payment as an electronic transfer (instead of a check) by submitting an Electronic Payment Request. The deadline for choosing payment by electronic transfer is March 26, 2027. Payments under $10 will not be issued.
How will the Settlement Fund be distributed?
Under the Settlement, Merrill has agreed to pay $39 million into a Settlement Fund to be used to make cash payments (“Cash Payments”) to Class Members. The $39 million Settlement Fund will be used to pay (i) Administrative and Notice Costs; (ii) attorneys’ fees and Litigation Expenses awarded by the Court; (iii) any Service Award awarded by the Court; and (iv) pro rata Cash Payments to Class Members based on the approximate amount of interest each Class Member would have earned if, based on Plaintiff’s allegations, RASP had paid a reasonable rate of interest.
Who is included?
You are a Class Member if you had one or more Merrill Edge retirement accounts with cash balances that were swept pursuant to RASP at any time during the period December 15, 2016 through March 15, 2020.
Please note that you must have held a Merrill Edge Self-Directed Investing retirement account during the relevant time (e.g., Individual Retirement Account (“IRA”), Roth IRA, Rollover IRA, Inherited IRA, Simplified Employee Pension (SEP) IRA, Savings Incentive Match Plan for Employees (SIMPLE) IRA). If you held only a Merrill Edge non-retirement account or if your retirement account was not offered by Merrill Edge Self-Directed Investing, you are not in the Class. If you are still not sure whether you are in the Class, please contact the class notice administrator (“Administrator”) or Class Counsel.
Your Legal Rights and Options
These deadlines may be moved, canceled, or otherwise modified, so please check this site regularly for updates.
| Option & Due Date | Event Description |
|---|---|
RECEIVE A CLASS CASH PAYMENT | Explanation: You do not need to file a claim to receive a cash payment. Your share of the Net Settlement Fund will be based on the Plan of Allocation set forth in FAQ 5. Given the expense of issuing payment, only Class Members whose share of the Net Settlement Fund is $10 or more will receive payment. Payment will be made to those Class Members with existing Merrill Edge retirement accounts directly into their retirement accounts, or by check or electronic transfer directly to those Class Members who no longer maintain their Merrill Edge retirement account. Class Members who no longer maintain Merrill Edge retirement accounts are strongly encouraged to choose to receive payment as an electronic transfer (instead of a check) by submitting an Electronic Payment Request. The deadline to choose payment by electronic transfer is March 26, 2027. |
OPT OUT OF THE CLASS Postmarked no later than February 19, 2027 | Explanation: You may elect to exclude yourself from, or “opt out” of, the Class. If you exclude yourself, you will not be bound by any orders or judgments in this action and will not share in the Settlement. But you will keep your right to sue Merrill separately about the same legal claims in this lawsuit. To exclude yourself, you must send a letter stating that you request to be “excluded from the Class in Valelly v. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Case No. 1:19-cv-07998-VEC.” Your request must include your full name, mailing address, email address, telephone number, and your personal signature. Requests on behalf of more than one Class Member will be deemed invalid. Your request must be mailed to Valelly v. Merrill Lynch, c/o JND Legal Administration, PO Box 91219, Seattle, WA 98111 and postmarked no later than February 19, 2027. If you previously excluded yourself from the Class, you do not need to do anything further. |
OBJECT OR COMMENT Received by February 19, 2027 | Explanation: You may write to the Court about why you do or don’t like the Settlement or requested attorneys’ fees and Litigation Expenses, or the service award sought by the Class Representative Plaintiff. You may also attend the hearing during which the Court will consider the fairness of the Settlement, the amount of attorneys’ fees and Litigation Expenses, and the Service Award sought by the Plaintiff, although you have no obligation to do so. For more information, see FAQ 12. |
SETTLEMENT HEARING DATE March 12, 2027 at 10:00 A.M. Eastern | Explanation: You do not need to attend the hearing. If you want your own lawyer to enter an appearance on your behalf, you may hire one at your expense. To appear and speak at the Settlement Hearing, you need to give prior notice to the Court. |
