U.S. Bancorp (USB) fined $37.5 Million for Illegally Exploiting Consumers’ Personal Data to Open Sham Accounts for Unsuspecting Customers
A shareholder filed a class action on behalf of all purchasers of U.S. Bancorp (NYSE: USB) securities between August 1, 2019 and July 28, 2022, for violations of the Securities Exchange Act of 1934.
According to the complaint, during the class period, defendants failed to disclose that: (a) U.S. Bank created sales pressure on its employees that led them to open credit cards, lines of credit, and deposit accounts without consumers’ knowledge and consent; (b) since at least 2015, U.S. Bank and by extension, U.S. Bancorp, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; and (c) U.S. Bancorp failed to properly monitor its employees from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers. The foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation.
On July 28, 2022, the truth about U.S. Bancorp’s practices was disclosed when the Consumer Financial Protection Bureau issued a Consent Order and fined U.S. Bank $37.5 million for illegally exploiting consumers’ personal data to open sham accounts for unsuspecting customers. On this news, the price of U.S. Bancorp stock declined 4% to close at $46.12 on July 28, 2022.
Next Steps: Shareholders who purchased shares of U.S. Bancorp between August 1, 2019 and July 28, 2022, must file their papers to be appointed lead plaintiff for the class by December 27, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.