AssetMark Trust Company Cash Sweep Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms, is investigating potential claims against AssetMark Trust Company / AssetMark, Inc. involving its cash sweep program.

If you had uninvested cash swept into the company’s cash sweep or “Complete Cash Solutions” program, you may be eligible for compensation through a potential class action.

A team of class action and securities lawyers is reviewing whether investors were fairly treated and adequately informed about how their cash was handled and what interest they earned, compared with what AssetMark may have earned on those same funds.

What is AssetMark?

AssetMark, Inc. is a wealth management and technology platform that works primarily with independent financial advisors and their clients. Through AssetMark Trust Company and affiliates such as Voyant and Adhesion Wealth, the company provides investment platforms, technology tools and outsourced services intended to help advisors manage client portfolios and run their practices more efficiently.

Why is AssetMark being investigated?

The investigation is focused on whether AssetMark’s cash sweep and Complete Cash Solutions practices:

• Resulted in customers earning lower interest on their swept cash than they reasonably should have under the circumstances
• Were clearly and fully disclosed, including how interest rates were set, how often they changed and whether different customers or balance tiers received materially different rates
• Created or reflected any undisclosed conflicts of interest, such as incentives for AssetMark or its affiliates to place or maintain client cash in particular sweep options
• Adequately informed investors about available alternatives on or off the platform that might have paid higher yields for similar levels of risk and liquidity

Across the broader financial industry, lawsuits have alleged that some institutions used cash sweep programs to generate “spread” or net interest income by paying customers relatively low rates on their cash while the institutions earned higher returns by investing or lending those same deposits.

Those suits claim that customers were not adequately informed about how much the institutions profited from this structure or how it might affect the interest customers received.

At this time, the investigation into AssetMark’s program is ongoing.

You May be Entitled to Compensation

People who had cash swept into AssetMark’s ICD Program, High Yield Cash or other Complete Cash Solutions options can take several steps:

• Gather records: Collect account statements, client agreements and any AssetMark Trust Company FDIC-Insured Cash Program Disclosure Statements or High Yield Cash flyers they received
• Note interest rates: Identify, if possible, the approximate interest rates and APYs paid on their swept cash over time, especially from 2022 onward
• Identify account types: Determine whether the accounts were advisory, discretionary, IRA, retirement or other types, as this can affect legal obligations and remedies
• Document communications: Save any emails, letters or advisor communications that discussed cash management, sweep options or “core” cash features

A team of class action and securities lawyers is reviewing these issues and is ready to evaluate individual situations confidentially and at no upfront cost. Participation in the investigation does not obligate anyone to take legal action, but it helps ensure their rights are protected as the facts are developed.

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

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