ALBUQUERQUE, N.M.—Wells Fargo and government-services contractor Conduent have reached settlements with two New Mexico residents who accused the companies of improperly refusing to reimburse thousands of dollars stolen from state-issued prepaid debit cards, bringing an end to a proposed class action that had been litigated for more than three years.
Plaintiffs Ana Munoz and Michael Tilley told a New Mexico federal court Friday they had reached settlements resolving their claims, according to Law360.
The dispute involved New Mexico’s EPPICard program, which delivered unemployment benefits, child-support payments and other state funds through prepaid debit cards. New Mexico contracted with Wells Fargo to operate the program, and Wells Fargo subcontracted with Conduent, which handled consumer-facing functions including fraud disputes. Munoz alleged more than $5,500 disappeared from her account, while Tilley alleged unauthorized transactions drained more than $13,000. Both said their reimbursement requests were denied.
Munoz and Tilley sued in 2023, alleging Wells Fargo and Conduent violated the federal Electronic Fund Transfer Act by failing to investigate fraud claims in good faith, improperly denying claims and placing the burden on consumers to prove transactions were unauthorized. They also alleged violations of New Mexico’s Unfair Practices Act. The companies disputed the allegations and sought to move the claims into arbitration.
The litigation produced a significant arbitration fight before the settlement. A federal judge initially ordered the claims against Wells Fargo into arbitration but allowed those against Conduent to remain in court. In March 2025, however, the 10th U.S. Circuit Court of Appeals reversed that portion of the ruling, finding Conduent could also compel arbitration under equitable-estoppel principles because the plaintiffs alleged substantially interdependent misconduct by Wells Fargo and Conduent.