$1.11M+ Limestone Bank Settlement Offers Cash to Accountholders Charged Certain Overdraft Fees

New to ClassAction.org? Read our Newswire Disclaimer

Limestone Bank has agreed to an up to $1,112,729 settlement to resolve a class action lawsuit that alleged the bank wrongfully charged accountholders verification fees and overdraft fees for transactions that were already authorized.

Get class action lawsuit and class action settlement news sent to your inbox – sign up for ClassAction.org’s free weekly newsletter.

The Limestone Bank class action settlement—comprised of $950,000 cash and $162,729-worth of debt relief—received preliminary approval from the court on December 5, 2025. The deal covers all individuals who were charged one or more of the challenged fees between May 3, 2013 and April 30, 2023 (the “class period”).

According to court documents, the challenged overdraft fees include “Authorize Positive, Settle Negative” (ASPN) fees, which were allegedly charged and not refunded on point-of-sale debit card transactions initiated with a positive balance that then settled into a negative balance, and “Verify Bank Fees,” charged because of verification processes on an account for which a third party deposited and withdrew minimal amounts of equal funds within a 24-hour period.

The court-approved website for the Limestone Bank class action settlement can be found at CooperOverdraftSettlement.com.

Court documents state that settlement class members do not need to do anything to receive a one-time, prorated cash payment or debt relief from the class action settlement.

Per the settlement website, payments to eligible consumers will be calculated by dividing the total amount of challenged fees a class member paid during the class period by the total amount of challenged fees paid by all settlement class members. The resulting figure will then be multiplied by the amount of money in the net settlement fund after the payment of all administrative costs, attorneys’ fees, and lead plaintiff service awards.

Class members will not receive more than the total amount of challenged fees they paid during the class period, settlement documents state.

If a class member still has an open Limestone Bank account, their cash payout from the settlement will be automatically credited to their account. Consumers without an open account will receive a physical check sent by mail by the settlement administrator.

Additionally, the Limestone Bank settlement offers up to $162,729 in debt relief to class members who still have outstanding, uncollected, and challenged fees.

Limestone Bank will cease collection of all challenged fees upon final approval of the settlement, court documents add.

Class members who would like to object to or exclude themselves from the settlement must send a letter to the settlement administrator with their information and a brief statement by March 6, 2026.

The court will decide whether to grant the Limestone Bank settlement final approval at a hearing on March 19, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Limestone Bank class action lawsuit alleged that the bank wrongfully charged $35 overdraft fees on debit card transactions that were authorized with sufficient funds. The case further claimed that Limestone Bank charged these unreasonable fees to increase its revenue “to the tune of tens of millions of dollars.”

Looking for current class action lawsuits to join? Check out ClassAction.org’s class action lawsuit list.