Bank of Hawaii Corp., the parent company of Bank of Hawaii, on Oct. 16 reached a tentative settlement with the named plaintiff to settle a putative class-action lawsuit alleging claims that Bank of Hawaii improperly assessed overdraft fees on certain account transactions.
The tentative settlement provides for forgiveness of certain related and previously charged off overdraft fees, and a payment by the company of $8.0 million into a class settlement fund. The proceeds of the class settlement fund will be used to refund class members, and to pay attorneys' fees, administrative and other costs, in exchange for a complete release of all claims asserted against the company. The Honolulu-based company previously established a $2.0 million reserve relating to this claim.
The tentative settlement is subject to documentation and court approvals.
The lawsuit pending in the U.S. District Court for the District of Hawaii was commenced in September 2016.