Wachovia to Pay Over $178M To Settle RICO Suit

Law360, New York (October 13, 2008, 12:00 AM EDT) -- Wachovia Bank has agreed to pay at least $178 million to settle a Racketeer Influenced and Corrupt Organizations Act consumer class action that accused the bank of conspiring with telemarketers and payment processing centers to steal funds out of consumers' bank accounts.

The key point in the agreement is that class members will be reimbursed without having to file claim forms.

The proposed settlement agreement, filed Friday and awaiting approval by the U.S. District Court for the Eastern District of Pennsylvania, requires Wachovia to change the...
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