JP Morgan Chase & Co. (NYSE: JPM) reportedly faces a new lawsuit accusing the bank of transferring customers' idle cash into accounts with "unreasonably" low interest rates.
Illinois resident Dan Bodea filed class action against JPMorgan on Friday in Manhattan federal court, reported Reuters.
Bodea accused JPMorgan of using its cash sweep program to shortchange customers while posing as their fiduciary and benefiting disproportionately.
Bodea did not disclose JPMorgan's interest rates on uninvested cash or how they compare to competitors' payouts.
The lawsuit seeks unspecified compensatory and punitive damages for alleged breaches of fiduciary duty, gross negligence, and unjust enrichment.
As per the report, some brokerages offer sweep rates exceeding 4%, while U.S. Treasury bills maturing within three months continue to yield over 5%.
This month, JPMorgan stated that it is considering legal action against CFPB over Zelle payment app investigations amid rising fraud scrutiny.
Investors can gain exposure to the stock via Copper Place Global Dividend Growth ETF (NYSE: GDVD) and iShares U.S. Financial Services ETF (NYSE: IYG).
Price Action: JPM shares are down 0.02% at $219.12 premarket at the last check Tuesday.