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Capital One Agrees to Pay $425M to Settle Savings Account Lawsuit
COFCapital One(COF) ZACKS·2025-05-19 15:56

Core Viewpoint - Capital One Financial Corporation has agreed to a 425millionsettlementregardingallegationsofmisleadingdepositorsaboutinterestratesonsavingsaccounts[1][2].Group1:LawsuitDetails−ThelawsuitwasinitiatedbydepositorswhoclaimedthatCapitalOnefalselypromisedhighinterestrateson360Savingsaccountswhileofferingbetterrateson360PerformanceSavingsaccounts[2].−Depositorsof360Savingsaccountsreceivedarateof0.3425 million settlement regarding allegations of misleading depositors about interest rates on savings accounts [1][2]. Group 1: Lawsuit Details - The lawsuit was initiated by depositors who claimed that Capital One falsely promised high interest rates on 360 Savings accounts while offering better rates on 360 Performance Savings accounts [2]. - Depositors of 360 Savings accounts received a rate of 0.3%, while 360 Performance Savings accounts had rates that peaked at 4.35% at the beginning of the previous year, currently at 3.6% [2]. Group 2: Settlement Terms - As part of the settlement, Capital One will reimburse 300 million to 360 Savings depositors for the interest they could have earned on 360 Performance Savings accounts [3]. - An additional $125 million will be distributed to depositors who still hold 360 Savings accounts [3]. - The settlement applies to all depositors with 360 Savings accounts since September 18, 2019, and legal fees will be covered by the settlement [3]. Group 3: Company Performance - Over the past six months, Capital One's shares have increased by 9.5%, while the industry has seen a rise of 13.6% [4]. - Capital One currently holds a Zacks Rank of 3 (Hold) [6].