Law360 (October 23, 2026, 9:28 PM EDT) -- A Washington federal judge granted final approval to a $4.2 million settlement to end class claims that Rapid Investments LLC and Axiom Bank NA charged former prisoners excessive and unfair fees on prepaid debit cards that held their personal cash that was returned to them upon release.

U.S. District Judge Benjamin H. Settle issued an order Thursday granting final approval and awarding class counsel from Sirianni Youtz Spoonemore Hamburger PLLC $1.2 million in attorney fees plus approximately $11,000 in litigation costs.

In granting the final OK, the judge found the parties reached the deal through arm's-length negotiations, and it provides an adequate recovery for the class by returning roughly 42% of the funds collected by the defendants to class members.

The settlement class includes all individuals in the United States who were taken into custody at a law enforcement facility and who were entitled to the return of money that was confiscated from them or remaining in their accounts when they were released, and who were issued a prepaid debit card holding those funds by Rapid Financial Solutions LLC and/or Axiom Bank between Jan. 16, 2024 and June 30, 2026.

Under the settlement terms, each class member who submits a valid claim will receive $15 plus three times the fees they incurred on the prepaid debit cards they received, the order stated.

Judge Settle also granted class representative Ashley Hall a $12,000 service award Thursday, finding she and her counsel adequately represented the class.

According to the suit, Rapid Financial and Axiom "convinced" detention facilities to use their prepaid debit cards to return money to released prisoners. The suit states that detention facilities were never charged a fee for using the defendants' services, but the defendants profited by assessing fees on the money loaded onto the prepaid debit cards that formerly incarcerated people never agreed to.

"Often, those fees consume the entire balance of the amount loaded on the card," the complaint says. "Releasees are forced to accept these fee-laden release cards to obtain the money they were legally owed; they are offered no alternative to the release card for the return of their money."

The suit accuses Rapid Financial and Axiom of violating the Electronic Fund Transfer Act, and engaging in abusive and illegal prison profiteering by exploiting class members "during the chaotic and confusing times when they were arrested, detained, and released from custody."

Representatives for the parties did not immediately respond to requests for comment Friday.

Hall and the class are represented by Richard E. Spoonemore and Eleanor Hamburger of Sirianni Youtz Spoonemore Hamburger PLLC.

Rapid Financial Solutions and Axiom Bank are represented by Robert J. Hoffman, Randall T. Thomsen and Shane P. Cramer of Bryan Cave Leighton Paisner LLP.

The case is Hall v. Rapid Investments LLC et al., case number 3:25-cv-05039, in the U.S. District Court for the Western District of Washington.

--Editing by Kristen Becker.

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