TD Ameritrade OKs $2.3M Deal Over Scottrade Clients' Tax Hit

By Katryna Perera (March 21, 2022, 5:38 PM EDT) -- TD Ameritrade has settled for $2.3 million with a certified class of consumers who accused Scottrade, a brokerage firm that TD acquired in 2017, of improperly issuing what are known as substitute payments rather than dividends to customers, depriving them of a lower tax rate.

The class filed a motion for preliminary approval of the deal in the U.S. District Court for the Western District of Missouri on Friday. According to the motion, the parties engaged in settlement talks after the class was certified in September. Both parties believe that the settlement is a better route than the continued risks of...

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