NEWS 5 offered payout. The settlement would have compensated well under 10% of the interest customers should have earned. 2. Capital One Had Not Fixed the Core Problem The court noted that millions of customers were still in the lower-yield account, showing that structural issues remained unaddressed even as the settlement was being approved. 3. Settlement Notices Were Misleading Judge Novak said key notices appeared confusing, unclear, or promotional, including an email titled “Earn a higher APY with a new account today,” which read like marketing rather than disclosure of a financial harm. The judge found this especially concerning for a case about inadequate customer communication. 4. Unprecedented Pushback From State Authorities Eighteen state attorneys general The lawsuit alleged that Capital One paid dramatically lower interest rates on its long-standing 360 Savings accounts while offering far higher returns on its nearly identical 360 Performance Savings product. Plaintiffs argued that Capital One did not clearly notify customers of the rate disparity, leading millions to miss out on years of interest. Judge David Novak of the Eastern District of Virginia outlined several critical failures in the deal: 1. Compensation Was Far Too Low Evidence suggested customer losses were many times higher than the objected to the settlement — an unusually high number signalling deep concern over fairness, compensation, and clarity. 5. Most Customers Still Earning Lower Rates Court filings showed that threequarters of affected customers remained in the inferior account even recently, reinforcing the judge’s view that the settlement did not adequately address ongoing harm. What Happens Now Both sides must return to negotiations and present a revised settlement that properly reflects customer losses, corrects disclosure issues, and satisfies the fairness standards required under federal class-action law. If no improved agreement emerges, the case is scheduled for trial in July 2026. Judge Rejects $425 Million Capital One Settlement Read the full news story at: www.lawyer-monthly.com NEWS A federal judge has rejected the proposed $425 million settlement in the Capital One interest-rate lawsuit, ruling that the agreement was unfair, inadequate, and failed to address the underlying issues at the heart of the case. The decision halts the approval process and sends both sides back to renegotiate a new deal.
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