Reich & Tang Settles w/Double Rock
A press release entitled, "Reich & Tang Settles Litigation Dispute with Island Intellectual Property LLC and Double Rock Corporation," dated Dec. 6, says, "Reich & Tang announced today that they have settled all litigation related to their dispute with Island Intellectual Property, LLC and Double Rock Corporation. The parties reached an amicable resolution. While the details of the agreement remain confidential, Reich & Tang will receive a perpetual, non-exclusive license to access the Island IP's intellectual property relating to its FDIC-insured sweep products, including the Demand Deposit Marketplace program." The release adds, "Reich & Tang offers the Demand Deposit Marketplace program which is an automated, daily cash sweep solution that enables investors to achieve millions of dollars in FDIC insurance while maintaining daily liquidity. The program automatically allocates investor deposits among several banks participating in the program, wherein the deposits never exceed the maximum FDIC coverage of $250,000 per bank per tax identification number or other unique identifier." Double Rock Corporation is run by Bruce Bent and Bruce Bent II, former owners of Reserve Management Corp., which advised The Reserve Primary Fund. (See also our Oct. 2, 2015 News, "Schwab Shifting MMF Sweeps to Bank; Double Rock vs. Reich and Tang.")
