SoFi Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms, is investigating potential claims against SoFi 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.

What is SoFi?

SoFi is a financial services provider that offers modern banking, lending and investment products. The company serves individuals and businesses with services including borrowing, saving, spending, investing and protecting money. SoFi operates through various entities, including SoFi Bank, N.A., a member of the FDIC, and SoFi Securities LLC, a member of FINRA and SIPC.

As a registered investment advisor, SoFi provides advisory services through SoFi LLC.

Cash Sweep Program

Many financial institutions, including SoFi, offer cash sweep features within their investment and brokerage accounts. These programs move uninvested or “idle” cash into interest-bearing deposit accounts, often at affiliated or partner banks. The intent is to provide customers with some return on cash that is not currently invested in securities, while maintaining liquidity and, in some cases, FDIC insurance.

Industry-wide, recent lawsuits have raised concerns that some cash sweep programs paid customers unreasonably low interest rates on their swept balances. Allegations in these cases include that financial institutions earned a higher rate by lending or investing the sweep deposits, while paying customers a much lower rate—generating significant “spread” revenue for the institution.

There are also concerns about whether customers were adequately informed about how much the institution profited from this spread and whether conflicts of interest existed, since lower customer rates directly increased the institution’s profits.

If SoFi customers had uninvested cash automatically swept into a low-interest cash sweep program, especially in discretionary investment accounts, IRAs or traditional brokerage accounts, they may have been impacted by these practices.

Customers who maintained large cash balances in these sweep programs for extended periods could have missed out on higher yields available elsewhere.

Your Rights and Next Steps

Consumers affected by a cash sweep program may have legal claims, including breach of contract or violations of disclosure obligations. Remedies could include monetary compensation for lost interest or other damages resulting from being paid below-market rates on swept cash balances.

If you believe you were affected by SoFi’s cash sweep program, consider taking these steps:

• Gather account statements and any documents detailing your cash sweep or “core” cash options, especially from 2022 onward
• Note the interest rates paid on your swept cash during the relevant periods
• Identify the type of account you held (discretionary, IRA, brokerage, etc.)
• Submit your information for a confidential, no-cost review by a team of experienced class action lawyers

You May Be Entitled to Compensation

If you had uninvested cash swept into SoFi’s cash sweep program, you may be eligible for compensation as part of a potential class action. The legal team is actively investigating these claims and is ready to review your situation.

To find out if you qualify, please complete the form on this page.