New York Attorney General Letitia James sued Capital One on Wednesday, accusing the bank of “cheating” customers out of millions of dollars in interest payments – just months after the Trump administration’s Consumer Financial Protection Bureau dropped a similar suit against the financial institution.

In a complaint filed in Manhattan federal court, James alleged that Capital One marketed its “360 Savings” account as its high-yield savings account, then left those customers in the dark by failing to inform them about its new “360 Performance Savings” product that offered substantially higher interest rates. 

As interest rates rose starting in 2022, the state attorney general’s office said, Capital One froze the interest rate of its 360 Savings product at 0.3%, while increasing the rate of the 360 Performance Savings accounts to as high as 4.35%, meaning New York 360 Savings customers lost out on “millions of dollars of interest.”

The suit further alleges that Capital One instructed its employees not to tell 360 Savings customers about the new product “unless they explicitly asked.”

The complaint mimics litigation by the CFPB, which was dropped in February under Trump-era CFPB Acting Director Russell Vought. That suit alleged Capital One’s marketing led U.S. customers to miss out on more than $2 billion in interest.

The dropped CFPB case is among a slew of other enforcement lawsuits that the agency pursued under previous CFPB director, Rohit Chopra, and that have been dismissed by President Donald Trump’s administration.

“Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” James said in a statement Wednesday. “Big banks are not allowed to cheat their customers with false advertising and misleading promises.”

Capital One did not immediately respond to CNBC’s request for comment Wednesday. The bank disputed the CFPB allegations earlier this year and told CNBC that it transparently marketed its 360 Performance Savings account.

The New York suit accuses Capital One of violating state and federal law and seeks “restitution and damages for all affected Capital One customers.”

Shares of stock brokerage platform eToro popped in their Nasdaq debut on Wednesday after the company raised almost $310 million in its IPO.

The stock opened at $69.69, or 34% above its initial offering price, pushing its market cap to $5.6 billion at the open. Shares were last up more than 40%.

The Israel-based company sold nearly 6 million shares at $52 each, above the expected range of $46 to $50. Almost 6 million additional shares were sold by existing investors. At the IPO price, the company was valued at roughly $4.2 billion.

Wall Street is looking to the Robinhood competitor for signs of renewed interest in IPOs after an extended drought. Many investors saw President Donald Trump’s return to the White House as a catalyst before tariff concerns led companies to delay their plans.

Etoro isn’t the only company attempting to test the waters. Fintech company Chime filed its prospectus with the SEC on Tuesday, while digital physical therapy company Hinge Health kickstarted IPO roadshow, and said in a filing it aims to raise up to $437 million in its impending offering. CoreWeave tested demand with its IPO in March.

EToro had previously filed to go public in 2021 through a merger with a special purpose acquisition company (SPAC) that would have valued it at more than $10 billion. It shelved those plans in 2022 as equity markets nosedived, but remained focused on an eventual IPO.

“We definitely are eyeing the public markets,” CEO Yoni Assia told CNBC in 2023, adding that the company is “evaluating the right opportunity.”

EToro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring. The company makes money through trading-related fees and non-trading activities such as withdrawals. Net income increased almost thirteenfold last year to $192.4 million from $15.3 million in 2023.

The company has steadily built a growing reputation in cryptocurrencies. Revenues from cryptoassets more than tripled to over $12 million in 2024 and one-quarter of its net trading contribution stemmed from crypto last year,. That’s up from 10% in 2023.

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