The $3.4 trillion-asset lender allegedly opened thousands of unauthorized accounts from 2012 to 2023, according to plaintiffs in a class-action lawsuit.

Bank of America has reached a deal to resolve claims that it opened thousands of unauthorized accounts, according to a notice filed in federal court Monday.

The bank reached a “settlement in principle” of class-action claims, originally filed in 2023, that allege its employees and agents knowingly opened accounts in the name of unknowing individuals, “motivated by pressure and incentives from management” to grow account numbers, according to a June amended complaint, filed in U.S. District Court for the Western District of North Carolina.

Plaintiffs allege that employees at BofA began creating fake accounts in 2012 to hit sales goals, based on an incentive program created that year which tied pay for its management and employees to the number of new banking products or services opened or used by consumers.

But consumers who had accounts opened in their names “were often unaware of account openings until reviewing credit reports,” the amended complaint said.

“Opening accounts has an impact on consumers, affecting their credit reports, imposing fees, and raising legitimate concerns about the safety of the personal information Bank of America is supposed to protect,” the complaint said.

The settlement agreement has not yet been finalized. Charlotte, North Carolina-based BofA and the case’s plaintiffs have requested a stay on all remaining deadlines “to allow the Parties to focus on finalizing the proposed settlement,” the Monday court filing said.

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