Overdraft class action settlement of Union Bank case preliminarily approved

Posted on: May 7th, 2012 by Steve Larson

Judge King in the Southern District of Florida preliminarily approved a settlement and certified a settlement class of customers who were charged overdraft fees based on Union Bank’s reordering from higher to lower.  The court’s order stated Union Bank entered into a Settlement Agreement and Release through arm’s-length negotiations with the assistance of Professor Eric Green, an experienced and well-respected mediator.  Under the settlement, subject to the terms and conditions therein and subject to court approval, plaintiffs and the proposed settlement class will fully, finally and release their claims in exchange for Union’s payment of $35,000,000, inclusive of all attorneys’ fees and costs, to create a common fund to benefit the settlement class. In addition, Union will separately pay for all costs associated with providing notice to the class.