Raymond James Lawsuit – BD to pay $15 million for Reportedly Overcharging Customers
According to reports this week, Raymond James has agreed to pay $15 million to settle two consolidated lawsuits that accused the firm of overcharging its clients in “passport” accounts.
The firm has also reportedly agreed to “remove language that formed the basis of the alleged misrepresentations” from these accounts, according to court documents, which were filed in a U.S. District Court in Florida.
The original lawsuit was filed in 2015 by Raymond James client who alleged that the firm inflated processing fees by up to 10 times in passport accounts, or self-directed accounts. The client asserted breach of contract and negligence but the case was dismissed in 2016 only to have the court reverse and remand it due to a successful appeal.
A judge reportedly granted the lawsuit class action status at the end of last year, a ruling Raymond James was reportedly appealing prior to the announcement of a settlement Tuesday, according to court documents.
The case was reportedly consolidated with a similar case filed in 2016. If the court approves the settlement in October, Raymond James will have to repay clients who were allegedly overcharged.
Raymond James reportedly denies the allegations.
According to the motion to settle, Clients may choose to exclude themselves from the settlement, thus retaining their rights to sue Raymond James individually. If they do not exclude themselves, they will receive a check for their “pro rata portion of the settlement fund.”
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