Outcome: $17,000,000 Settlement
Roberts v. Capital One, N.A., No. 1:16-cv-04841- LGS in the United States District Court for the Southern District of New York
In a notable resolution of a complex legal dispute, on behalf of plaintiff Tawanna Roberts and similarly situated individuals, TZ reached a successful settlement with defendant Capital One, N.A. The action arose from allegations against Capital One for charging overdraft fees on debit card transactions. These transactions were authorized against accounts reflecting a positive balance but ultimately settled with a negative balance due to the posting of intervening charges. The plaintiff contended that these charges were in violation of the terms outlined in Capital One’s own account agreements.
Plaintiffs faced an uphill legal battle that initially resulted in a dismissal, but their persistence resulted in an appeal. The Second Circuit Court of Appeals rendered an opinion that effectively vacated the dismissal with respect to claims for breach of contract and violation of New York General Business Law, remanding the matter for further proceedings.
TZ was appointed class counsel. Following rigorous motion practice and two mediation sessions, the parties arrived at a mutual accord. Settlement terms include a substantial settlement fund amounting to $17,000,000.00, paid by Capital One, to compensate affected class members.
The defined settlement class includes current and former consumer checking account customers of Capital One, specifically those who do not hold Capital One 360 accounts, and who encountered overdraft fees due to the aforementioned circumstances. Class members’ applicable class periods vary based upon the state of the account holder.
This settlement, underscored by its substantial financial compensation, demonstrates Tycko & Zavareei’s dogged pursuit of economic justice for consumers wrongfully charged overdraft fees.