Susquehanna Bancshares (SUSQ) in Lititz, Pa., has settled a lawsuit with customers who challenged the $18 billion-asset company's overdraft fees.
Susquehanna, without admitting wrongdoing, agreed to pay about $3.7 million to settle the litigation. Consumers have sued dozens of banks, claiming that they wrongfully reordered debit card processing, in order to maximize fee revenue. More than a dozen banks have settled or are seeking court approval of settlements, and some plaintiffs have voluntarily dismissed claims against other banks.
Susquehanna's management does not expect the settlement payment to have a material adverse effect on its operations, financial position or cash flow, the company said in its annual report filed Wednesday with the Securities and Exchange Commission.
Susquehanna's settlement agreement requires approval from U.S. District Court Judge Lawrence King of the Southern District of Florida. Other cases associated with the consolidated multidistrict litigation remain pending.
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