Capital One Financial (COF) Closer to Ending Depositor Lawsuit With $425 Million Settlement Deal

Capital One Financial Corporation (NYSE:COF) is included in our list of the 10 Goldman Sachs undervalued stocks to invest in.

On January 12, 2026, Capital One Financial Corporation (NYSE:COF) received the U.S. federal judge’s preliminary approval for its revised $425 million class-action settlement with depositors. Those depositors allege they were denied promised high interest rates. In addition to the cash payout, the bank agreed to increase rates on legacy 360 Savings accounts to match 360 Performance Savings. The concession is valued at roughly $540 million by plaintiffs’ lawyers. The company also agreed to maintain both products for at least two years.

The case builds upon claims that Capital One Financial Corporation (NYSE:COF) retained older accounts at 0.30%, while offering rates above 4% to new customers under the product with similar branding.

With final approval scheduled for April 20, 2026, New York’s attorney general confirmed that the state will not proceed with its own lawsuit if the settlement takes effect.

Meanwhile, on the same day, RBC Capital raised its price target on Capital One Financial Corporation (NYSE:COF) from $255.00 to $275.00, while reiterating a ‘Sector Perform’ rating. The investment firm cited stable consumer fundamentals, expected sequential loan growth, and modest improvements in core credit metrics ahead of Q4 results.

Capital One Financial Corporation (NYSE:COF), a diversified U.S. bank, offers credit cards, consumer banking, and commercial lending. The bank serves millions of customers across deposits, payments, and credit products.

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