US Bancorp Faces Investor Suit After CFPB Fine for Sham Accounts

U.S. Bancorp misled investors over its practice of allegedly pressuring sales employees to open credit cards and other products without consumers’ knowledge, according to a new lawsuit in Manhattan federal court.

Investors filed the proposed class action complaint against the Minneapolis bank Wednesday, arguing that they suffered significant losses and damages because of the alleged misrepresentations. The lawsuit, which claims securities law violations, also targets certain US Bancorp executives including the CEO of its subsidiary, US Bank.

Risk warnings included in the bank’s financial reports contained “generic ‘catch-all’ provisions that were not tailored to U.S. Bancorp’s ...