The Steady Drip: Federal Judge Rejects Capital One’s $425 Million Settlement With Depositors (Connecting the Dots: Letitia James Attorney General of New York, Committee on Economic Development, Capital One Financial Corporation, The New York Stock Exchange, Russia, Anwar Sadat, The Muslim Brotherhood & Soros Funding, All Networking)

Federal Judge Rejects Capital One’s $425 Million Settlement With Depositors (Connecting the Dots: Letitia James Attorney General of New York, Committee on Economic Development, Capital One Financial Corporation, The New York Stock Exchange, Russia, Anwar Sadat, The Muslim Brotherhood & Soros Funding, All Networking)

The judge ruled that the payout was insufficient.

The Epoch Times

Mary Prenon

Freelance Reporter

11/7/2025|Updated: 11/7/2025

The logo for Capital One Financial is displayed above a trading post on the floor of the New York Stock Exchange on July 30, 2019. Richard Drew/AP Photo

https://www.theepochtimes.com/business/federal-judge-rejects-capital-ones-425-million-settlement-with-depositors-5941645

A federal judge of the U.S. District Court for the Eastern District of Virginia rejected Capital One’s $425 million class action settlement with depositors who accused the bank of tricking them out of higher interest rates on Nov. 6, ruling that the payout was insufficient and that millions of depositors would continue to be shortchanged.

According to a January complaint, the class action settlement stemmed from Capital One’s freezing of interest rates at 0.3 percent on its 360 Savings Accounts, labeled as “high interest” accounts. Depositors also alleged that Capital One offered rates of more than 4 percent to new customers on similarly named 360 Performance Savings Accounts.

Based in McLean, Virginia, Capital One admitted no wrongdoing as part of the original settlement.

In the decision to reject the settlement amount, court documents also mention Capital One’s claims to have alerted 360 Savings Account customers about switching to the 360 Performance Savings accounts. However, Judge David Novak called the company’s notification a “marketing pitch” rather than an informational notification.

“Nowhere in these notices do the parties clarify that Capital One continues to pay 360 Savings Account holders a much lower interest rate than if they held 360 Performance Savings Accounts,” the decision states. “Nor does this language speak to the gross disparity in interest rates between these two accounts.”

Court documents also discuss the receipt of “numerous letters” from class action members, as well as a brief filed by the New York Attorney General’s office on behalf of New York State and 17 other states, objecting to the proposed settlement.

The judge gave credit to the 18 state attorneys general in opposition to the settlement, saying collectively they represent almost half of the U.S. population, and “presumably, nearly half of class members.”

“The Court finds that the proposed class action settlement fails to meet the standard laid out in Rule 23(e), specifically as to the adequacy of the proposed settlement and the equitable treatment of class members,” the decision states. “While the proposed settlement is fair from a procedural standpoint, the Court finds it neither reasonable nor adequate on substance.”

In its decision, the court stated specifically that Capital One’s settlement would provide a recovery of less than 10 percent of damages and that it failed to provide sufficient relief to almost 75 percent of those depositors remaining in the 360 Savings accounts.

“Under the proposed settlement, these millions of class members would continue to experience the same financial harm that they have already experienced for years,” the decision states. “Such relief falls short of what is merited by Plaintiffs’ claims.”

Based on current interest rates, the judge also found that class action members would receive only about 0.8 percent interest on their deposits for less than 16 months, after which Capital One could revert the rates back to whatever it chooses.

The judge noted that 360 Savings Account depositors would be earning four to eight times less than the 360 Performance Savings account holders.

The Court has now directed all parties to continue further settlement negotiations.

Capital One Financial Corporation is a financial holding company with $468.8 billion in deposits and $661.9 billion in total assets as of September 2025. Capital One N.A. operates primarily in Louisiana, Maryland, New York, Texas, Virginia and the District of Columbia. The Fortune 500 company trades on the New York Stock Exchange under the symbol “COF.”

The Epoch Times has reached out to Capital One for comment.

Connecting the Dots:

Letitia James is the Attorney General of New York and the chair for the Committee on Economic Development.

Foundation to Promote Open Society was a funder for the Committee for Economic Development and the People for the American Way.

George Soros is the chairman for the Foundation to Promote Open Society.

Patrick W. Gross is a trustee at the Committee for Economic Development and a director at the Capital One Financial Corporation.

Alec Baldwin is a high-profile commercial spokesman for Capital One, a director at People for the American Way and was the host for Up Late With Alec Baldwin.

Up Late With Alec Baldwin was an MSNBC program.

Foundation to Promote Open Society was a funder for the International Rescue Committee.

George Soros is the chairman for the Foundation to Promote Open Society.

International Rescue Committee is a partner with the ONE Campaign.

Michael R. Bloomberg is an advocate for the ONE Campaign and the founder for the Bloomberg Family Foundation.

Bloomberg Family Foundation was a funder for the Aspen Institute (think tank).

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Walter Isaacson is the president & CEO for the Aspen Institute (think tank), was a director at the Bloomberg Family Foundation and the chairman & CEO for CNN.

Ted Turner is the founder of CNN and a co-chairman for the Nuclear Threat Initiative (think tank).

Carnegie Endowment for International Peace (think tank) was a funder for the Nuclear Threat Initiative (think tank).

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

William H. Donaldson was a trustee at the Carnegie Endowment for International Peace (think tank) and a chairman & CEO for the New York Stock Exchange.

Richard A. Debs was a trustee at the Carnegie Endowment for International Peace (think tank), a chairman for the New York Stock Exchange and Anwar Sadat’s pro-bono financial adviser.

Anwar Sadat’s pro-bono financial adviser Richard A. Debs and was the president of Egypt.

Mohamed Morsi was the president of Egypt and is the leader for the Muslim Brotherhood.

Frank G. Wisner was a U.S. ambassador for Egypt and is a director emeritus for Refugees International.

Foundation to Promote Open Society was a funder for Refugees International.

George Soros was the chairman for the Foundation to Promote Open Society and is a member of the Breakthrough Energy Coalition.

Alwaleed bin Talal is a member of the Breakthrough Energy Coalition and a prince of Saudi Arabia.

Chas. W. Freeman Jr. was U.S. ambassador for Saudi Arabia and is a trustee at the Carnegie Endowment for International Peace (think tank).

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

William H. Donaldson was a trustee at the Carnegie Endowment for International Peace (think tank) and a chairman & CEO for the New York Stock Exchange.

Richard A. Debs was a trustee at the Carnegie Endowment for International Peace (think tank), a chairman for the New York Stock Exchange and Anwar Sadat’s pro-bono financial adviser.

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Gregory B. Craig is a trustee at the Carnegie Endowment for International Peace (think tank) and was the White House counsel for the Barack Obama administration.

James F. Collins is a senior associate at the Carnegie Endowment for International Peace (think tank) and was a U.S. ambassador for Russia.

Jamie S. Gorelick was a trustee at the Carnegie Endowment for International Peace (think tank), a deputy attorney general for the U.S. Department of Justice, is Ivanka Trump & Jared Kushner’s attorney and a partner at Wilmer Cutler Pickering Hale and Dorr.

Federal Bureau of Investigation (FBI) is a division of the U.S. Department of Justice.

Robert S. Mueller III was a director at the Federal Bureau of Investigation (FBI) and a partner at Wilmer Cutler Pickering Hale and Dorr, is investigating interference with Russia in the 2016 U.S. election, special counsel investigating Russian ties in the 2016 Donald Trump presidential campaign, a special counsel at the U.S. Department of Justice, James Quarles III is assisting him in the Russia probe, Jeannie Rhee is assisting him in the Russia collusion probe and Aaron Zebley is assisting him in the Russia probe.

James Quarles III is assisting Robert S. Mueller III in the Russia probe and was a partner at Wilmer Cutler Pickering Hale and Dorr.

Jeannie Rhee is assisting Robert S. Mueller III in the Russia collusion probe, was a deputy assistant attorney general at the U.S. Department of Justice and a partner at Wilmer Cutler Pickering Hale and Dorr.

Aaron Zebley is assisting Robert S. Mueller III in the Russia probe and was a partner at Wilmer Cutler Pickering Hale and Dorr.

Cameron F. Kerry was an associate at Wilmer Cutler Pickering Hale and Dorr, is John F. Kerry’s brother, a fellow at the Brookings Institution (think tank) and a senior counsel at Sidley Austin LLP.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Michelle Obama was a lawyer at Sidley Austin LLP.

Barack Obama was an intern at Sidley Austin LLP.

Newton N. Minow is a senior counsel at Sidley Austin LLP and a member of the Commercial Club of Chicago.

R. Eden Martin is counsel at Sidley Austin LLP and the president of the Commercial Club of Chicago.

Cyrus F. Freidheim Jr. is a member of the Commercial Club of Chicago and an honorary trustee at the Brookings Institution (think tank).

Teresa Heinz Kerry is an honorary trustee at the Brookings Institution (think tank) and married to John F. Kerry.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank) and a senior counsel at Akin, Gump, Strauss, Hauer & Feld, LLP.

Akin, Gump, Strauss, Hauer & Feld, LLP was the lobby firm for Nasdaq Inc.

NASDAQ Stock Market Inc. is the former name of Nasdaq Inc.

Deborah L. Wince-Smith was a director at the NASDAQ Stock Market Inc., a director at Nasdaq Inc., and is a member of the Belizean Grove.

Merit E. Janow is a member of the Belizean Grove and was a director at the NASDAQ Stock Market Inc.

Belizean_Grove is the equivalent to the male-only social group, the Bohemian Club.

Henry A. Kissinger was a member of the Bohemian Club and was a lifetime trustee at the Aspen Institute (think tank).

John J. Phelan Jr. was a lifetime trustee at the Aspen Institute (think tank) and a chairman & CEO for the New York Stock Exchange.

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Henrietta Holsman Fore is a trustee at the Aspen Institute (think tank) and a member of the Belizean Grove.

Walter Isaacson is the president & CEO for the Aspen Institute (think tank) and was the chairman & CEO for CNN.

Ted Turner is the founder of CNN and a co-chairman for the Nuclear Threat Initiative (think tank).

Carnegie Endowment for International Peace (think tank) was a funder for the Nuclear Threat Initiative (think tank).

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

William H. Donaldson was a trustee at the Carnegie Endowment for International Peace (think tank) and a chairman & CEO for the New York Stock Exchange.

Richard A. Debs was a trustee at the Carnegie Endowment for International Peace (think tank), a chairman for the New York Stock Exchange and Anwar Sadat’s pro-bono financial adviser.

Anwar Sadat’s pro-bono financial adviser Richard A. Debs and was the president of Egypt.

Mohamed Morsi was the president of Egypt and is the leader for the Muslim Brotherhood.

Frank G. Wisner was a U.S. ambassador for Egypt and is a director emeritus for Refugees International.

Foundation to Promote Open Society was a funder for Refugees International.

George Soros was the chairman for the Foundation to Promote Open Society and is a member of the Breakthrough Energy Coalition.

Alwaleed bin Talal is a member of the Breakthrough Energy Coalition and a prince of Saudi Arabia.

Chas. W. Freeman Jr. was U.S. ambassador for Saudi Arabia and is a trustee at the Carnegie Endowment for International Peace (think tank).

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank) and the Committee for Economic Development.

George Soros was the chairman for the Foundation to Promote Open Society.

Letitia James is the chair for the Committee on Economic Development and the Attorney General of New York.

Foundation to Promote Open Society was a funder for the Committee for Economic Development and the People for the American Way.

George Soros is the chairman for the Foundation to Promote Open Society.

Patrick W. Gross is a trustee at the Committee for Economic Development and a director at the Capital One Financial Corporation.

Richard H. Davis is a trustee at the Committee for Economic Development and a managing director at Davis Manafort.

Viktor F. Yanukovich is a Davis Manafort client and was the president of the Ukraine.

Ukraine & Russia was a part of the Union of Soviet Socialist Republics (USSR) republic.

KGB was a security agency for the Union of Soviet Socialist Republics (USSR).

Vladimir Putin was a lieutenant colonel for the KGB and is the president of Russia.

James F. Collins was a U.S. ambassador for Russia and is a senior associate at the Carnegie Endowment for International Peace (think tank).