LegalApr 27, 2026, 06:07 AM
OPY Settles 'Cash Sweep' Litigation for $70M
AI Summary
Oppenheimer Holdings Inc.'s principal operating subsidiary, Oppenheimer & Co. Inc., has agreed to settle the previously disclosed "cash sweep" class action litigation for $70 million. The lawsuit, filed in June 2025, concerned the company's programs for sweeping idle customer cash into bank demand deposit accounts. The company decided to settle to avoid the inherent risks of a jury trial, as the plaintiff had sought damages exceeding $440 million. The settlement amount will significantly impact the company's first fiscal quarter 2026 earnings, though it is expected to be fully tax deductible.
Key Highlights
- OPY's subsidiary, Oppenheimer & Co., Inc., agreed to settle the "cash sweep" class action litigation for $70 million.
- The litigation, filed in June 2025, involved claims related to the company's idle customer cash sweep programs.
- Plaintiff had sought damages in excess of $440 million in the class action lawsuit.
- The $70 million settlement amount will be paid into an escrow account after preliminary court approval, expected within 90 days.
- The settlement is subject to District Court approval and will resolve all claims without admission of liability.
- The company expects the settlement reserve to significantly impact its Q1 2026 earnings, with the amount being fully tax deductible.