If you’ve come across news about the PNC retirement account cash sweep lawsuit, you might be wondering what it means for PNC investors and retirement account holders.
The case has gained attention for raising questions about whether PNC acted in the best interests of its clients when handling uninvested cash in their retirement and investment accounts.
Let’s break down the details in simple terms, so you can understand what this lawsuit is about, why it matters, and how it could affect investors like you.
What Is the PNC Retirement Account Cash Sweep Lawsuit About?
The PNC retirement account cash sweep lawsuit is a class action filed against PNC Financial Services Group, its investment arm PNC Investments LLC, and National Financial Services LLC. The lawsuit alleges that PNC breached its fiduciary duties and contractual obligations by moving uninvested customer cash into internal PNC bank accounts that paid unreasonably low interest rates.
These accounts were part of the PNC Priority Bank Deposit Sweep Program, which automatically “sweeps” idle cash from a customer’s investment or retirement account into a bank deposit account. The issue, according to the lawsuit, is that PNC allegedly chose low-yield accounts within its own bank rather than finding higher-interest options for clients. This means that while customers earned very little interest, PNC reportedly made significant profits from those deposits.
How Did the Cash Sweep Program Work?
A cash sweep program is a common feature in brokerage and retirement accounts. When an investor’s cash is not actively invested in stocks, bonds, or funds, the brokerage moves (or “sweeps”) the money into an interest-bearing account, such as a bank deposit or money market fund.
The purpose is to keep uninvested money safe while earning some interest. However, the PNC retirement account cash sweep lawsuit claims that PNC used this system for its own benefit rather than for the benefit of its clients.
According to the complaint, PNC:
- Deposited clients’ uninvested cash into low-interest PNC Bank accounts.
- Paid interest rates as low as 0.05%, even when the federal funds rate was over 5%.
- Allegedly kept the difference between what it earned on these deposits and what it paid to clients.
In other words, PNC may have been earning millions from the same funds that should have earned better returns for investors.
Why Investors Are Concerned
For many investors, particularly those with retirement accounts, the issue goes beyond a few dollars of lost interest. Over time, small differences in interest rates can lead to thousands of dollars in lost income.
The PNC retirement account cash sweep lawsuit claims that the bank’s actions were unfair and violated its responsibility to act in the best interests of its customers. Because PNC allegedly chose to prioritise its own profits, investors might have missed out on higher yields available in the market.
The lawsuit also alleges that PNC only raised its sweep interest rates after the lawsuit was filed — a move that may indicate awareness of potential wrongdoing.
Legal Basis of the Lawsuit
The PNC retirement account cash sweep lawsuit includes several key legal claims:
- Breach of Fiduciary Duty – PNC allegedly failed to act in the best interests of retirement account holders, a duty it owed as their fiduciary.
- Breach of Contract – The lawsuit claims that PNC did not fulfil its contractual promise to provide fair and competitive interest rates.
- Breach of the Implied Covenant of Good Faith and Fair Dealing – PNC is accused of acting in bad faith by manipulating sweep rates for its own benefit.
- Unjust Enrichment – The bank allegedly profited unfairly by pocketing the difference between what it earned on customers’ cash and what it paid them.
How Much Money Is Involved?
The plaintiff, Ahmed M. Hegazy, filed the case in December 2024 in a Pennsylvania federal court. He is seeking damages exceeding $5 million on behalf of all affected PNC customers.
According to financial reports, PNC’s net interest income reached $3.3 billion in the second quarter of 2024. The lawsuit suggests that part of this massive profit came from the same sweep accounts where customers earned almost no return.
How the Court Is Handling the Case
On July 30, 2025, the court appointed Rosemary M. Rivas and Gibbs Mura as lead counsel for the proposed class action. This means they will represent all investors who might have been affected by the alleged low-interest sweep program.
The lawsuit is formally titled Ahmed Hegazy v. PNC Investments LLC, et al., and is being heard in the U.S. District Court for the Western District of Pennsylvania.
What This Means for PNC Customers
If you hold a PNC retirement account or had cash balances automatically moved into PNC’s sweep accounts, this case could be relevant to you.
The lawsuit argues that many customers were not aware their uninvested cash was being placed into accounts with below-market rates, causing hidden financial losses. While the court has yet to decide on compensation, the outcome could influence how financial institutions manage sweep programs in the future.
Affected customers could potentially join the class action if they meet the eligibility criteria. Those who believe they suffered financial harm due to low-interest sweep accounts can contact the legal team handling the case or participate in the ongoing class action investigation.
Why This Case Matters
The PNC retirement account cash sweep lawsuit could have a major impact on how investment firms handle uninvested cash.
If the allegations are proven true, it would highlight a broader problem in the financial industry — where brokers and banks may design sweep programs that benefit them more than their clients. The case could also lead to changes in how interest rates for cash sweep accounts are disclosed and determined.
For retirement investors, this lawsuit is a reminder to review where their idle cash is being stored and what kind of returns they’re getting. Even small differences in interest rates can significantly affect long-term savings.
What You Can Do
If you or someone you know held cash in a PNC-managed brokerage or retirement account that participated in the sweep program, it’s worth checking whether you qualify to join the lawsuit.
You may be eligible if:
- You held uninvested cash that was automatically transferred into low-yield sweep accounts.
- You earned less interest than the market average during the periods mentioned in the case.
- You were part of PNC’s Priority Bank Deposit Sweep Program between 2018 and 2024.
To learn more, you can contact the firms leading the investigation or visit ongoing class action information pages that track the progress of this lawsuit.
Final Thoughts
The PNC retirement account cash sweep lawsuit is more than just a dispute over interest rates — it’s about financial transparency and trust between institutions and their customers. Retirement accounts are meant to protect long-term savings, and when banks or brokers prioritize profit over fairness, it undermines investor confidence.
This lawsuit serves as a reminder to stay informed about where your money goes, how it earns returns, and whether your financial institution truly acts in your best interest.
As the case progresses, the outcome could shape future industry standards and help ensure that investors receive fair treatment and fair returns on every dollar they save.