If you recently saw a legal notice in your inbox about Corrente et al. v. The Charles Schwab Corporation, you probably did what most people do: scrolled straight to the bottom to see how much money you’re getting.
Well, I’ve got some news that might be a bit of a letdown. Unlike those "check in the mail" settlements we all love, this one is a different beast entirely. We are talking about a massive antitrust lawsuit involving 25 million people, yet the actual cash payout for the average class member is exactly zero dollars.
It sounds like a bad joke, right? But the reality of the Corrente v. Schwab settlement is a fascinating look at how the legal system handles huge corporate mergers and why sometimes "winning" a case doesn't mean you're getting paid.
The core of the drama: Why Schwab got sued
Basically, this all started back in June 2022. Three plaintiffs—Jonathan Corrente, Charles Shaw, and Leo Williams—filed a class action lawsuit in a Texas federal court. They weren't just annoyed at a fee; they were attacking the very foundation of the $26 billion merger between Charles Schwab and TD Ameritrade that happened in 2020.
The argument was pretty technical but honestly quite simple: the plaintiffs alleged that by merging, Schwab and TD Ameritrade basically created a titan that "substantially lessened competition" in what they called the Retail Order Flow Market (ROFM).
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What is "Price Improvement" and why does it matter?
When you hit "buy" on a stock in your Schwab app, the broker doesn't always just grab it at the first price they see. They are supposed to hunt for the best possible deal. This is called price improvement. The lawsuit claimed that because the merger killed off a major competitor (TD Ameritrade), Schwab customers ended up getting worse deals on their trades.
The plaintiffs argued this violated Section 7 of the Clayton Act. They weren't just looking for a small refund; they originally wanted to undo the merger entirely. Talk about an uphill battle.
The settlement: Millions for lawyers, "Compliance" for you
After years of legal sparring and over 6.5 terabytes of financial data being handed over, the parties finally sat down for mediation. On November 24, 2025, Chief District Judge Amos L. Mazzant III signed off on the final approval of the settlement.
Here is where the "notice of settlement - corrente et al. v. schwab" gets really controversial. The deal includes:
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- $8.25 million in attorney fees.
- $686,492 in litigation expenses.
- $5,000 "service awards" for each of the three named plaintiffs.
- An Antitrust Compliance Program for Schwab.
Notice what's missing? There is no pot of gold for the 25 million class members.
Why isn't there a payout?
The court essentially decided that getting a cash refund for "potential" losses on stock trade pricing was nearly impossible to calculate for 25 million people over several years. Instead, the settlement focuses on injunctive relief.
Basically, Schwab agreed to set up a formal antitrust compliance program to ensure they don't use their massive size to bully the market in the future. For the lawyers, this is a "win" because it changes corporate behavior. For the average investor who was hoping for a $20 credit to their brokerage account, it feels like a whole lot of nothing.
The backlash: "A scam for lawyers?"
Not everyone took this sitting down. A well-known legal advocate named Theodore H. Frank, from the Hamilton Lincoln Law Institute, filed an objection. He basically called the settlement out for being one-sided, arguing that it gave millions to lawyers while providing "hypothetical future relief" that doesn't actually help the people who were supposedly harmed.
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It’s a classic critique of the class action system. The lawyers spent over 14,000 hours on this case. They’ll tell you they earned every penny of that $8.25 million by holding a corporate giant accountable. Critics, however, look at the "notice of settlement - corrente et al. v. schwab" and see a deal where the only people who actually profited were the ones wearing suits in the courtroom.
What this means for your Schwab account
If you’re a Schwab or former TD Ameritrade customer, you don't actually have to "do" anything. Since there is no money to claim, there is no claim form to fill out. You’ve probably already been included in the "Settlement Class" automatically.
By not "opting out" before the deadlines in mid-2025, you’ve legally released Schwab from any further claims regarding this specific merger and the price improvement issues. You can't sue them later for this same thing.
Looking ahead: The "Cash Sweep" litigation
Interestingly, while the Corrente case is winding down, Schwab is facing other lawsuits that might actually involve money. These are the "Cash Sweep" class actions.
Investors are currently suing Schwab (and several other big brokers like LPL and Morgan Stanley) alleging that the firms moved client cash into low-interest bank accounts to enrich themselves, rather than putting that money into higher-yielding options. Unlike the antitrust merger case, these "sweep" cases are much more focused on direct financial loss, which means they might—just might—actually lead to a check in your mailbox down the road.
Summary of the Corrente v. Schwab outcome
| Feature | Detail |
|---|---|
| Case Name | Corrente et al. v. The Charles Schwab Corporation |
| Total Cash for Class | $0.00 |
| Legal Fees Awarded | $8.25 Million |
| Primary Requirement | Schwab must implement an antitrust compliance program |
| Status | Final Approval granted Nov 2025; case dismissed with prejudice |
Next steps for savvy investors
- Check your email: Search for "Notice of Settlement" or "Corrente" to find the official documents sent to you. It's worth reading the "Release" section so you know exactly what rights you've waived.
- Monitor the Cash Sweep cases: If you're looking for a settlement that actually pays out, keep an eye on Loughran v. Charles Schwab. That’s the one dealing with interest rates on your idle cash.
- Review your "Price Improvement": You can actually see how much Schwab is "saving" you on trades. Look at your trade confirmations; they usually list a "Price Improvement" dollar amount. It’s a good way to see if you’re actually getting a fair shake in the post-merger world.
- Evaluate your cash holdings: Since the Corrente case didn't change how Schwab makes money, take a look at your "sweep" settings. If your idle cash is sitting at 0.45% or lower, consider manually moving it into a money market fund yielding 4% or 5%—don't wait for a lawsuit to fix your returns for you.
Ultimately, the notice of settlement - corrente et al. v. schwab serves as a reminder that in the world of high-finance litigation, "justice" often looks like a corporate policy update rather than a deposit in your bank account.