Capital One, Employees Reach $9.6 Million Deal in 401(k) Suit

Capital One Financial Corp. and a group of former employees have agreed to a $9.6 million settlement to end a 401(k) plan proposed class action in which the workers claimed the bank mismanaged its employees’ retirement plan by using forfeited contributions for its own gain.

Lawyers for the employees filed an unopposed motion for preliminary approval of a settlement plan on behalf of both parties to the US District Court for the Southern District of New York on Tuesday. The parties have been hammering out the terms of the deal over the last few months before a third-party private mediator, ...