Outcome: $25,000,000 Settlement
Jenna Lloyd, et al. v. Navy Federal Credit Union, Case No.: 3:17-cv-01280 in the United States District Court for the Southern District of California
In a legal battle against Navy Federal Credit Union, plaintiffs, represented by Tycko & Zavareei LLP, brought forth allegations concerning the unfair assessment and collection of overdraft fees. The case was built around the claim that Navy Federal had improperly charged overdraft fees to its members. Members affected by these practices sought monetary damages, interest, attorneys’ fees, restitution, and other equitable reliefs.
Litigation Progress and Class Counsel
The case survived motion to dismiss, allowing plaintiffs to file a second amended complaint. Through the course of the lawsuit, Tycko & Zavareei LLP played a vital role as they were appointed as class counsel, acknowledging their expertise and commitment to the class members’ representation.
Class Period Definition
The settlement defined the class period as the time frame from July 22, 2012, to November 20, 2017. The Settlement Class included all current and former members of Navy Federal who incurred overdraft fees, known as Optional Overdraft Protection Service or OOPS Fees, for transactions authorized into a positive available balance during this period. It excluded members who first enrolled in the OOPS service post-February 13, 2017.
Settlement Terms and Outcome
The settlement negotiation resulted in a significant victory for the plaintiffs. Navy Federal agreed to create a common cash fund amounting to $24,500,000.00 as part of their obligation under the settlement agreement. This fund was established to compensate eligible class members impacted by the alleged improper overdraft practices of Navy Federal within the defined class period.
Settlement Impact
This substantial settlement reflects the successful efforts of Tycko & Zavareei LLP in championing consumer rights and holds a financial institution accountable for its overdraft fee practices. This multimillion-dollar settlement underlines the firm’s capability to achieve a favorable outcome that serves the interests of the affected class members.