Core Viewpoint - JPMorgan Chase is facing a proposed class action lawsuit for allegedly paying near-zero interest rates on cash sweep accounts, which is claimed to be significantly lower than market rates despite rising federal funds rates [1][2]. Group 1: Legal Proceedings - A U.S. District Judge ruled that JPMorgan must address claims of breaching deposit account agreements by not adjusting interest rates according to economic conditions [3]. - The lawsuit alleges that the Cash Sweep programs resulted in customers losing billions in net interest income due to artificially low interest rates of 0.01% to 0.03% [2][6]. - Claims regarding breaches of fiduciary duties were dismissed, with the judge stating that automatic enrollment in the Cash Sweep programs was not a recommendation from JPMorgan [4]. Group 2: Industry Context - Other banks, including Wells Fargo and Bank of America, have faced similar lawsuits regarding cash sweep practices, with varying outcomes in court [5][6]. - In January 2025, Wells Fargo and Bank of America settled SEC civil charges related to their cash sweep practices for a total of $60 million, without admitting wrongdoing [6].