Comerica Bank $1.96M California Way2Go Card Settlement

Consumers who had a claim for unauthorized transactions denied on their California Way2Go card since July 20, 2020, may qualify to receive a cash payment from a class action settlement.

Comerica Bank and Conduent State & Local Solutions Inc. agreed to pay $1.96 million to resolve a lawsuit alleging they improperly denied cardholders’ disputes over unauthorized transactions due to conflicting information.

Who are the class members?

Class members must meet all of the following criteria:

• They had a California Way2Go prepaid Mastercard.
• They submitted a dispute for an unauthorized transaction on their card.
• Comerica Bank and Conduent State & Local Solutions Inc. denied their dispute because of “conflicting information.”
• The denial occurred on or after July 20, 2020.

If individuals received a notice by mail or email, records indicate they are part of the class.

How much can class members get?

Each class member who does not opt out will receive a payment based on the amount of their denied unauthorized transaction dispute. The total settlement fund is $1,956,000, which the settlement administrator will distribute after deducting attorneys’ fees, costs and administration expenses.

The estimated payment is about 73% of the amount of the class member's denied claim.

The exact amount may vary depending on the total number of eligible claims and final court approval of fees and costs. If there are funds left over after the first round of payments, the settlement administrator will issue a second round to those who accepted the initial payment. It will then donate any remaining funds to the Consumer Federation of California.

No action needed to receive payment

Class members do not need to submit a claim form to receive their payment. Those who received a postcard or email notice are already identified as class members.

Payments will be sent automatically via paper check. Class members who wish to receive an electronic payment method instead must visit the settlement website and follow the instructions to choose their preferred payment option.

$1.96 million settlement fund breakdown

The $1,956,000 settlement fund includes:

• Settlement administration costs: $24,536 (estimated)
• Attorneys' fees: $489,000
• Attorneys' expenses: $56,536
• Service award to class representative: $10,000
• Payments to eligible class members: The remaining funds

Important dates

• Deadline to object or opt out: Nov. 10, 2025
• Final approval hearing: Dec. 11, 2025

When is the Sparkman v. Comerica Bank payout date?

The settlement administrator will send payments after the court grants final approval of the settlement and resolves any appeals.

Why is there a class action settlement?

The class action lawsuit alleged Comerica Bank and Conduent State & Local Solutions Inc. violated the Electronic Funds Transfer Act and the California Unfair Competition Law and breached their contract by denying California Way2Go cardholders’ unauthorized transaction disputes due to “conflicting information.”

The companies deny any wrongdoing. Both sides agreed to settle to avoid the risks and costs of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ