Merrill Lynch has agreed to pay $39 million to settle claims that it paid almost nothing in interest on cash swept out of Merrill Edge retirement accounts, and no one has to file a claim form to be included. The stipulation of settlement was filed September 30 in federal court in Manhattan, and InvestmentNews reported on October 2 that it needs approval from U.S. District Judge Valerie Caproni. Merrill denies wrongdoing, the outlet said.

Which accounts and which years

The class covers all persons who had one or more Merrill Edge retirement accounts with cash balances swept under the Retirement Asset Savings Program, known as RASP, between December 15, 2016 and March 15, 2020, according to the stipulation. A sweep program moves uninvested cash in an account into a default holding place. The plaintiffs in Valelly v. Merrill Lynch, No. 1:19-cv-07998, say that cash earned between 0.05 and 0.14 percent while other brokerages paid about 2 percent, per InvestmentNews.

The earlier class notice went to about 1.1 million individual account IDs, the stipulation says. That counts accounts, not people, so the number of savers is smaller. As of September 25, 2026, 69 members of the class had asked to be excluded.

The people affected, then, are anyone who held a Merrill Edge retirement account with swept cash during those three years and three months, and what they have to settle is when a payment could arrive and how to confirm it did.

A settlement with no claim form puts the burden on watching the court calendar, because payment depends on approval dates nobody mails to the saver. The Settlement & Refund Recovery System explains the four-date rule for reading a settlement notice and gives a claim log and payment tracker for recording what arrives.

Track the Merrill sweep settlement with a payment tracker →

How the money would reach savers

The stipulation states: “This is not a claims-made settlement.” Current Merrill accountholders may receive direct payments from Merrill, and former accountholders are paid directly by the administrator, JND Legal Administration. Each class member’s share is set pro rata, meaning in proportion, from the Net Settlement Fund, which is the $39 million minus court-awarded attorneys’ fees and expenses, notice and administration costs, any service awards and taxes.

The stipulation sets no fee percentage. Class counsel, Wolf Popper LLP, will ask the court for fees and expenses, and the amount is in the judge’s discretion. A $500,000 costs fund is set aside for notice and administration. No document gives a per-person payment, and the figure depends on each account’s swept balances and the fees the court allows.

Where approval stands

The settlement is a proposal. The motion for preliminary approval, filed the same day, asks the court to approve the notices and schedule a hearing, and the proposed order leaves the hearing date blank, listing only that it falls in 2027. The motion also describes an additional opportunity for class members to opt out. No approval order has been reported as of October 8.

The money does not move until the court signs off at a final hearing and any appeals end. Merrill also paid a $25 million penalty to the SEC in January 2025 over interest on advisory accounts, InvestmentNews noted, a separate matter from this class action.

Watching for the notice and the payment

The free route is the court file itself. The stipulation and the motion for preliminary approval are public in Valelly v. Merrill Lynch, Pierce, Fenner & Smith Inc., and a new docket entry will show when the judge acts. Once the judge preliminarily approves the deal, the postcard, email and long-form notices described in the motion are the documents that set the opt-out and objection dates.

Savers who held Merrill Edge retirement accounts in those years can pull old statements showing swept cash, keep the mailing and email address Merrill has on file current, and know that a closed account is still covered, since former accountholders are paid by the administrator. Anyone who wants out of the class to keep an individual claim has to act inside the notice window, so the date on the notice matters more than any date in the news.

Payments to current accountholders can arrive from Merrill rather than a settlement check, so a deposit in a retirement account is easy to miss without a note of the expected date.

A $39 million settlement with no form to file

With no claim form, the first sign of payment may be a posting inside a retirement account or a check from an administrator, and a notice date can pass unread. The Settlement & Refund Recovery System teaches the four-date rule for reading a settlement notice and supplies a claim log and payment tracker, which suits a settlement that pays in the background. It is a 50-page system built around settlements and refunds in general, not this case alone.

Log the Merrill settlement dates and payment in the Recovery System tracker →

This article was produced with AI assistance and edited for accuracy against the sources linked above.