Capital One $9.6M ERISA Settlement, Current & Former Employees Could Get Paid

Capital One Financial Corporation agreed to pay $9.6 million to settle a federal class action lawsuit over how it managed forfeited funds inside its employee retirement plan. Plaintiffs alleged Capital One used unvested employer contributions — known as forfeitures — to fund new matching contributions rather than to reduce the plan’s administrative fees, which they claimed violated ERISA, the federal law that protects workers’ retirement savings. Current and former Capital One employees who participated in the Associate Savings Plan between November 11, 2018 and January 13, 2026 are automatically included — no claim form required.

Quick Facts

Current Status & What Happens Next

• The Fairness Hearing is currently scheduled for 9:30 a.m. on June 25, 2026, at the U.S. District Court for the Southern District of New York, where Judge Margaret M. Garnett will decide whether to grant final approval.
• Settlement class members who wish to object must file written objections with the Court no later than May 26, 2026 — after that date, all rights to object are waived.
• You cannot opt out of this settlement — the Court has certified it as a non-opt-out class action under Federal Rule of Civil Procedure 23(b)(1), meaning all eligible plan participants are automatically bound.

What Did Capital One Do With Your 401(k) Money? 

When employees leave Capital One before they are fully vested, they forfeit the portion of their employer-matched contributions they have not yet earned. Under the Capital One Associate Savings Plan, employees must work for at least two years to vest in their employer contributions — those who leave sooner forfeit any unvested amounts. Those forfeited dollars then sit inside the plan and must be put to use.

Plaintiffs claimed that ERISA required Capital One to use those forfeited funds to pay the plan’s administrative expenses — costs like recordkeeping, investment management, and legal fees that every 401(k) plan incurs. Instead, Capital One allegedly recycled the forfeitures back into new matching contributions for other employees.

That distinction matters to you directly. When a company uses forfeitures to pay admin fees, those fees do not come out of your account balance. When a company uses forfeitures to fund matching contributions instead, your account absorbs a proportionally higher share of those fees over time. Plaintiffs allege this practice violated ERISA’s fiduciary duties of prudence and loyalty. Capital One denied all wrongdoing but agreed to settle to avoid continued litigation.

Who Is Eligible to Receive Payment? 

You may qualify if you participated in the Capital One Financial Corporation Associate Savings Plan at any time between November 11, 2018 and January 13, 2026.

You may qualify if you are a beneficiary of a deceased person who participated in the plan during that period.

You may qualify if you are an alternate payee — for example, a former spouse who received a share of a plan participant’s account under a qualified domestic relations order (QDRO) during the class period.

You may qualify even if you are a former Capital One employee who no longer works there — former participants receive a direct payment check rather than a deposit back into the plan.

You do not qualify if you are a named Defendant in the lawsuit or a direct beneficiary of a Defendant.

Important: You cannot exclude yourself from this settlement. All class members are bound by its terms once the Court grants final approval.

How Much Will You Receive? 

The $9.6 million settlement fund will be distributed on a pro-rata basis. The settlement administrator calculates each class member’s share based on the number of years they maintained a positive account balance in the plan during the class period, relative to the total number of eligible class members.

In plain terms: the longer you participated and the higher your account balance, the larger your share. The final net settlement amount — what remains after attorneys’ fees, administrative costs, and any court-approved case contribution awards to named plaintiffs — is not yet confirmed.

Former plan participants will receive payment by check. Current participants with an active account balance will have their share deposited directly into their plan account. Checks are valid for 180 days from the date of issue. If you are a former employee and your address has changed, contact Class Counsel immediately so your check reaches you.

For another recent case involving a company’s mismanagement of employee benefits, read our coverage of Hefty Recyclable Bags False Advertising Settlement — Arizona Buyers Can Claim Cash on AllAboutLawyer.com.

How to Receive Your Payment 

Step 1 — Do nothing if you are a current or former plan participant who falls within the class period — you are automatically included and do not need to submit a claim form.

Step 2 — Confirm your current mailing address is up to date, especially if you are a former Capital One employee. Contact Class Counsel at Capozzi Adler, P.C. at [email protected] or mail your updated address to 312 Old Lancaster Rd, Merion Station, PA 19066.

Step 3 — Monitor your plan account or mailbox after the June 25, 2026 final approval hearing. Current employees will see a deposit directly into their Associate Savings Plan account. Former employees will receive a paper check.

Step 4 — If you object to any aspect of the settlement, file a written objection with the Clerk of the Court, Daniel Patrick Moynihan U.S. Courthouse, 500 Pearl Street, New York, NY 10007 — no later than May 26, 2026.

Step 5 — Contact the settlement administrator with questions at [email protected] or by phone at 888-687-6708.

Step 6 — Save your payment confirmation or deposit record for tax purposes, as some settlement payments may be taxable income.

Estimated time to complete: 5 minutes

Important Deadlines & Dates 

Frequently Asked Questions 

Do I need a lawyer to receive my payment? 

No. Class Counsel — Capozzi Adler, P.C. — already represents all eligible class members at no direct cost to you. You do not need to hire a separate attorney to receive your payment. If you want independent legal advice, you may hire your own lawyer at your own expense.

Is this settlement legitimate?

 Yes. The case is Singh, et al. v. Capital One Financial Corporation, et al., No. 1:24-cv-08538-MMG, filed in the U.S. District Court for the Southern District of New York before Judge Margaret M. Garnett. You can verify all details at the official settlement website: capitaloneerisasettlement.com.

When will I receive my payment? 

Payments will not go out until after the Court grants final approval at the June 25, 2026 Fairness Hearing. If appeals are filed, the timeline could extend further. Check capitaloneerisasettlement.com for updates after the hearing date.

What if I missed the claim deadline? 

There is no claim form or filing deadline for this settlement — you are automatically included if you participated in the Capital One Associate Savings Plan between November 11, 2018 and January 13, 2026. The only deadline that affects you is the May 26, 2026 objection deadline.

Will this settlement payment affect my taxes?

 Each class member who receives a payment is fully responsible for all federal, state, and local taxes on that payment. The settlement administrator intends payments to qualify as “restorative payments” under IRS Revenue Ruling 2002-45, which can reduce taxable income in some cases. Consult a tax professional for advice specific to your situation.

What is ERISA and why does it matter for my 401(k)? 

ERISA — the Employee Retirement Income Security Act of 1974 — is the federal law that sets the rules for how employers must manage retirement plans. It requires plan managers to act as fiduciaries, meaning they must put plan participants’ financial interests first. Plaintiffs alleged Capital One violated these fiduciary duties by prioritizing matching contributions over fee reduction when allocating forfeited funds.

Can I opt out of this settlement if I disagree with it? 

No. This settlement is certified as a non-opt-out class action under Federal Rule of Civil Procedure 23(b)(1). You cannot remove yourself from the settlement class. Your only formal option to challenge the settlement is to file a written objection with the Court by May 26, 2026.

What happens to my account if I object to the settlement?

 Filing an objection does not remove you from the class or forfeit your payment. You may still receive your share of the settlement even if you object. An objection simply tells the Court that you believe the settlement terms should be changed or rejected.

Sources & References 

• Official Settlement Website: capitaloneerisasettlement.com
• Official Settlement FAQ: capitaloneerisasettlement.com/frequently-asked-questions
• Important Dates Page: capitaloneerisasettlement.com/important-deadlines

Last Updated: March 13, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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