TD Ameritrade to pay $1.4 million to settle investor tax lawsuit

By Theresa Schliep (July 19, 2022, 2:45 p.m. EDT) – TD Ameritrade has agreed to pay $1.4 million to settle claims that it failed to compensate investors for the higher taxes they paid due to the broker’s use of their securities in short sales, the investors told a Missouri federal court.

The investor class asked the Missouri federal court, in a motion filed Monday, to approve a preliminary settlement that would create a pool of $1.4 million that TD Ameritrade would use to compensate 11,000 investors eligible for redemption.

The preliminary settlement would entitle class members to payments of 13.52% of the amount of the broker’s replacement payments that…

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