Arkadios Capital, LLC Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms, is investigating potential claims against Arkadios Capital, LLC involving its cash sweep program.

If you had uninvested cash swept into the company's cash sweep program, you may be eligible for compensation through a potential class action.

Company Background

Arkadios Capital, LLC is a full-service independent broker-dealer and registered investment adviser (RIA). The firm describes itself as being founded “by advisors for advisors,” with a focus on serving entrepreneurial financial advisors.

Arkadios states that it partners with financial advisors who typically generate $1 million or more in annual revenue and manage more than $100 million in assets under management. The firm promotes a “real open architecture” model, emphasizing flexibility and a platform that advisors “won’t outgrow.”

Cash Sweep Program

Many brokerage and advisory firms, including Arkadios, use “cash sweep” or “bank deposit sweep” programs to handle uninvested cash in customer accounts. Instead of leaving cash idle, the firm automatically “sweeps” it into an interest-bearing deposit account, often at participating or affiliated banks.

On its customer information page, Arkadios provides:

• An “FDIC Sweep Deposit Program”
• “FDIC Disclosure Documents”
• “NFS Bank Deposit Sweep Program Rates”

Across the financial industry, similar cash sweep programs have come under scrutiny. Publicly filed lawsuits and court records show that, since 2022, approximately 25 separate federal cases have challenged aspects of cash sweep programs at various financial institutions.

Allegations in those cases include:

• Customers’ uninvested cash was swept into accounts that paid unfairly low interest rates
• The rates paid on sweep balances were allegedly below what investors could have earned in other available cash alternatives
• Institutions generated “net interest income” or “spread revenue” by earning a higher rate on the swept deposits while paying customers a lower rate
• Institutions allegedly did not adequately disclose how much they profited from the spread or the potential conflicts of interest created by this structure

You may be entitled to compensation

A team of class action and securities lawyers is ready to review individual situations confidentially and at no upfront cost.

To find out if you may be eligible for compensation related to Arkadios Capital’s cash sweep program, please complete the form on this page so the team can review your information and contact you about your potential claim.