Bank of America Overdraft Settlement Overvalued, Objector Says

A class settlement between Bank of America N.A. and customers was overvalued at $66.6 million, resulting in an unreasonable attorneys’ fee award for class counsel, an objector told the Ninth Circuit March 25.

The attorneys were awarded $14.5 million, 21 percent of the $37.5 million cash fund and $29.1 million in debt reduction payments to customers challenging its overdraft practices.

But the $29.1 million figure is “illusory,” objector Rachel Threatt told the U.S. Court of Appeals for the Ninth Circuit in her opening brief.

The lower court “committed legal error by valuing the illusory debt relief on a one-to-one cash ...