Merrill Lynch Settlement: $39 Million Over Merrill Edge Retirement Cash
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The Merrill Lynch settlement in the news is a proposed $39 million deal in Valelly v. Merrill Lynch, filed September 30, 2026. It covers people whose Merrill Edge retirement accounts had cash swept into Merrill-affiliated bank deposits between December 15, 2016 and March 15, 2020. As of October 8, 2026 no judge has approved it, and there is no claim form, no claim deadline and no payment date. A second, separate Merrill Lynch lawsuit over later years is still being fought.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Merrill Lynch Lawsuit Says
Merrill Edge self-directed retirement accounts — IRAs, Roth IRAs, rollover, inherited, SEP and SIMPLE IRAs — automatically moved uninvested cash into deposit accounts at Merrill-affiliated banks through the Retirement Asset Savings Program (RASP). The lawsuit alleges that Merrill's customer agreement promised no less than a “reasonable rate” of interest on that cash, and that Merrill broke that promise.
According to the plaintiff, the swept cash earned 0.05% to 0.14% a year while other brokerages paid about 2%. The plaintiff's plaintiffs calculated damages at $68.6 million. Merrill denied wrongdoing and maintains it was not liable; the settlement does not establish that it breached any contract.
Case Details
The case is Valelly v. Merrill Lynch, Pierce, Fenner & Smith Inc., No. 1:19-cv-07998-VEC, in the U.S. District Court for the Southern District of New York, before Judge Valerie E. Caproni. It was filed on August 27, 2019 as a breach-of-contract class action. In July 2025 Judge Caproni denied Merrill's motion for summary judgment, leaving the “reasonable rate” question for a jury. On February 26, 2026 she certified the class.
A different Merrill Lynch class action — In re Merrill Lynch Cash Sweep Programs, No. 1:23-cv-10768, before Judge Margaret M. Garnett in the same court — covers retirement and non-retirement accounts in later years. It is not part of this settlement.
Status: $39 Million Deal Filed, Not Yet Approved
That means no claim form, no claim deadline and no payout date exist yet. The settlement agreement itself is not freely available, so it is not yet public whether class members will file a claim or be paid automatically. Our news report covers the filing in detail: Merrill Lynch’s $39 million settlement is 57% of the class’s own damages figure.
The second case is still active. On September 30, 2026 Judge Garnett ruled that Merrill Lynch must face most of the claims in In re Merrill Lynch Cash Sweep Programs, while Bank of America itself was let out. No class has been certified there and nothing has been settled.
Who Is in the Merrill Lynch Class Action
The certified class is everyone who had one or more Merrill Edge retirement accounts with cash balances swept through RASP at any time from December 15, 2016 through March 15, 2020. Cash swept outside that window is not covered. Merrill Edge non-retirement accounts are not covered, and neither are accounts not offered through Merrill Edge.
If you excluded yourself by the July 22, 2026 deadline (or by September 15, 2026, the later date set for people who were sent a postcard notice), you are out. If you did nothing, you are still in — you do not need to sign up anywhere. The settlement motion asks the court to give class members an additional chance to opt out of the settlement itself; any new date will appear in the court-approved notice.
The official case website is MLRetirementAccountLitigation.com, run by JND Legal Administration. On October 2, 2026 it still showed the old class notice and the cancelled trial date.
How Much the Merrill Lynch Settlement Could Pay
The allocation formula is also not public. In cases like this, money is usually divided in proportion to how much cash an account had swept and for how long — but that is context, not a prediction for this case. A small cash balance in a few months of the class period will likely mean a small payment. Payment can only follow final approval, which has not been scheduled. Our payout calculator explains why a fund total says little about one person's share.
How cases like this one end
Our copy of the federal courts’ own case database covers 123,245 other contract casesclosed in U.S. federal district courts between 2015 and 2025, 5.8% of them filed as class actions:
- 30.9% ended in a settlement recorded by the court. Another 20.2% were dismissed voluntarily, which often follows a private settlement — so the real settlement share sits between 30.9% and 51.1%.
- 7.6% were decided on a motion before any trial.
- 1 in 71 reached a trial (1.4%), after a median of 29.3 months.
- Median time from filing to the end of the case: 7.6 months.
- Only 7,369 of them (6%) record a money award at all; the median of those is $402,000.
These are base rates for this type of case (federal other contract cases) — not a prediction about this lawsuit, and not legal advice. Source: Federal Judicial Center, Integrated Database (civil), analysed by Settlement Insight. Cases heard in state courts are not included.
Merrill Lynch Cash Sweep Case Timeline
- 1
August 27, 2019 — Lawsuit Filed
Valelly v. Merrill Lynch is filed in the Southern District of New York over interest paid on swept cash in Merrill Edge retirement accounts.
- 2
July 2025 — Summary Judgment Denied
Judge Caproni rejects Merrill's bid to end the case and leaves the “reasonable rate” question for a jury.
- 3
February 26, 2026 — Class Certified
The court certifies a class of Merrill Edge retirement account holders whose cash was swept through RASP from December 15, 2016 to March 15, 2020.
- 4
July 22, 2026 — Opt-Out Deadline
The deadline to exclude yourself from the certified class passes. A later date of September 15, 2026 applied to postcard-notice recipients.
- 5
September 8, 2026 — Trial Cancelled
After the parties report a binding term sheet, Judge Caproni cancels the October 13, 2026 trial and orders a motion for preliminary approval.
- 6
September 30, 2026 — $39 Million Deal Filed
The class asks the court to approve the settlement. The same day, Judge Garnett lets most claims in the second Merrill case proceed. As of October 8, 2026 neither case has a claim form.
Three Things to Watch For
A widely reported $39 million number with no claim form yet is exactly the gap imposters fill:
“File your $39 million Merrill claim” sites
No claim process exists as of October 8, 2026. A site asking for your Social Security number or account number to “secure your share” is not the administrator. The only official site is MLRetirementAccountLitigation.com.
Calls or texts asking for your Merrill login
Class members are identified from Merrill's own records. JND Legal Administration (1-833-207-0938) will never need your Merrill Edge password, a one-time code or a processing fee.
Ads for the “new” Merrill Lynch cash sweep lawsuit
The second case, In re Merrill Lynch Cash Sweep Programs, is unsettled and uncertified. An ad to “join” it is a request to sign a retainer, not a claim — and it has nothing to do with the $39 million.
Merrill Lynch Settlement — Questions People Actually Ask
Is there a class action lawsuit against Merrill Lynch right now?
Yes, two over cash sweeps. Valelly v. Merrill Lynch (No. 1:19-cv-07998) covers Merrill Edge retirement accounts from December 15, 2016 to March 15, 2020 and has a proposed $39 million settlement. In re Merrill Lynch Cash Sweep Programs (No. 1:23-cv-10768) covers later years and is still being litigated.
Am I part of the Merrill Lynch class action settlement?
You are in the class if you had a Merrill Edge retirement account — such as an IRA, Roth IRA, rollover, inherited, SEP or SIMPLE IRA — whose cash was swept through RASP at any time from December 15, 2016 through March 15, 2020, and you did not opt out. Non-retirement accounts are not included.
How much will I get from the Merrill Lynch settlement?
No per-person amount has been published. The $39 million is a total before fees and costs, and the allocation formula is not public. Your share will depend on the formula the court approves.
Is there a claim form or deadline?
Not as of October 8, 2026. The settlement is waiting for preliminary approval. If it is approved, JND Legal Administration will send notice by postcard and email, and that notice will say whether you need to file anything and by when.
When will the Merrill Lynch settlement pay out?
There is no payment date. Money can only be paid after preliminary approval, a notice period and a final approval hearing — none of which had been scheduled as of October 8, 2026.
Is there a Merrill Lynch class action settlement service I need to sign up with?
No. You do not register with any service to be in this class. The administrator is JND Legal Administration, reachable at 1-833-207-0938 or PO Box 91219, Seattle, WA 98111. The one useful step is to keep your email and mailing address current with the administrator.
Is this the same as Merrill's SEC cash sweep penalty?
No. In January 2025 Merrill paid a $25 million SEC penalty over cash in advisory accounts. That went to the regulator, not to a claims process, and it is separate from both private lawsuits.
What about the other Merrill Lynch lawsuit over cash sweeps?
In re Merrill Lynch Cash Sweep Programs, before Judge Margaret M. Garnett, covers retirement and non-retirement accounts. On September 30, 2026 the judge let most claims against Merrill proceed and dismissed Bank of America itself. No class has been certified and there is no settlement. The other cash-sweep settlements in the news, such as Oppenheimer's $70 million deal, are separate; see our list of open class action settlements.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
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