Capital One Gets First Approval for $9.6 Million 401(k) Accord

Capital One Financial Corp. secured initial approval for a $9.6 million class settlement with employees challenging how the company handles the 401(k) contributions forfeited by departing workers.

The proposed deal, which is slated to benefit about 66,000 people covered by Capital One’s plan, resolves claims the company wrongly put 401(k) forfeitures toward its mandatory plan contributions instead of using that money to lower workers’ expenses. Judge Margaret M. Garnett granted preliminary approval to the deal in an order issue Tuesday in the US District Court for the Southern District of New York.

• The employees initially estimated damages at more than ...