Capital One Wins Preliminary OK for $425 Million Depositor Settlement

Overview

• A U.S. federal judge granted preliminary approval on January 12 for Capital One’s revised $425 million class‑action settlement over legacy 360 Savings account rates.
• Terms include raising legacy 360 Savings rates to match 360 Performance Savings and keeping both products for two years, concessions plaintiffs value at roughly $540 million.
• Final approval is scheduled for April 20, 2026, and New York’s attorney general said the state will not pursue its case if the settlement takes effect.
• RBC Capital lifted its price target to $275 with a Sector Perform rating, citing stable consumer fundamentals, expected sequential loan growth, and modest credit improvement.
• The pending Discover acquisition remains central to the strategy, with management projecting about $2.7 billion of 2026 synergies in a potential closed‑loop model, as political talk of capping card rates and calls for clarity on buybacks draw scrutiny.