U.S. Bank settles excessive overdraft class action for $55 million

Posted on: July 6th, 2012 by Steve Larson

Another case involving allegations that banks charged excessive overdrafts when it reordered debit transactions from largest to smallest instead of in the order they were received has settled.  The parties notified Judge King in the MDL proceedings pending in the Southern District of Florida that that on July 1, 2012, they executed a Summary Agreement that sets forth the material terms of the Parties’ binding and enforceable agreement to fully, finally and forever resolve, discharge, and release all rights and claims in, or that could have been asserted in, the above referenced actions based on U.S. Bank’s payment of the sum of $55 million (the “Settlement”), without admission of liability by U.S. Bank, subject to preliminary and final approval of the Settlement and dismissal of the actions with prejudice by the Court. The Settlement will be memorialized in a comprehensive written Settlement Agreement and related documents, which the parties will endeavor to file with the Court as part of a motion for preliminary approval within 90 days. 

The Speers v. U.S. Bank and Waters v. U.S. Bank, cases are presently on appeal to the Eleventh Circuit after Judge King denied U.S. Bank’s motion to compel arbitration. The Eleventh Circuit has stayed proceedings in this Court pending resolution of those appeals. Late on July 1, the parties notified the Eleventh Circuit of the Settlement and requested a stay of the pending appellate proceedings pending completion and approval of the Settlement before this Court. The parties will promptly seek an Order from the Eleventh Circuit, lifting the stay of proceedings in this Court, for the limited purpose of permitting the parties and the Court to effectuate the parties’ Settlement. The parties will promptly notify the Court when the Eleventh Circuit acts.