Judge David Novak rejected an initial settlement proposal in November 2025 before approving the revised terms last month. The lawsuit centered on Capital One's failure to notify legacy account holders about the superior Performance Savings option, particularly as rate differentials widened following Federal Reserve increases—reaching 4.35% versus 0.30% by December 2023. Capital One has denied wrongdoing but agreed to align interest rates between both account types going forward. The renegotiated settlement increased net restitution to approximately $425 million after federal prosecutors objected to earlier proposals offering less than $300 million in actual payments.
Attorneys should note that payouts commence within weeks to potentially millions of affected customers. The settlement is distinct from Capital One's separate 2019 data breach settlement, which provides unrelated identity protection services through 2028. Capital One's stock has declined nearly 22% year-to-date, and the company faces ongoing scrutiny over account management practices.