Court Denies Merrill's Motion To Exclude Expert Testimony

In a September 27, 2024 ruling, Judge Valerie Caproni, United States District Judge for the Southern District of New York denied, in substantial part, the motion filed by defendant Merrill Lynch, Pierce, Fenner & Smith, Inc. to exclude the expert testimony of Dr. Darius Palia. Dr. Palia, an economist and banking professor at Rutgers Business School, testified on behalf of plaintiff and the putative class, represented by Wolf Popper LLP, that the interest rate paid to Merrill's retirement customers on their sweep accounts was not reasonable, and that the class sustained damages. The court sustained key portions of Dr. Palia's expert opinions, including comparisons between Merrill's sweep rates and certain online savings accounts, along with a pass-through methodology analyzing the reaction of Merrill's sweep rates to changes in the federal funds rate.