According to Reuters, California’s Supreme Court on Monday unanimously ruled that Bank of America (BAC) need not pay a potential $1 billion or more to customers who claimed the bank illegally raided Social Security benefits to collect fees.
Plaintiffs in the class-action case had accused the largest U.S. bank of dipping into their Social Security direct deposit accounts between 1994 and 2003 to collect fees for overdrafts and other debts.
A 2004 San Francisco trial court ordered the Charlotte, North Carolina-based bank to pay $284.4 million of damages, plus up to $1,000 to each customer who suffered substantial emotional or economic harm.
The case was filed on behalf of more than 1 million customers, many of whom were elderly or disabled…
Monday’s…ruling by the California Supreme Court upheld a 2006 appeals court decision that reversed the trial court ruling.
BAC was up more than 2 percent, at mid $11 levels in afternoon trading on the NYSE.