Russell Simmons Settles RushCard Lawsuits

News & Views | Gerren Keith Gaynor | 03/18/2016 | 11:30 AM EDT

(Photo: Charley Gallay/Getty Images for TWC)

Music and media mogul reportedly pays out plaintiffs in class action lawsuit

Russell Simmons has reportedly reached a settlement with thousands of RushCard customers who sued the company over a glitch that left them without access to their funds.

The music and media mogul will pay out to each cardholder, putting an end to a class action lawsuit filed last year, reports

In the lawsuit, Simmons is accused of fraud and breach of contract by customers of his debit card service. Plaintiffs said they were unable to pay their bills on time, while some even claimed to have been evicted from their homes as a result.

Russell Simmons Reportedly 'Devastated' Over RushCard Scandal

"Plaintiff’s and class members were fraudulently induced into purchasing RushCards and depositing money into their RushCard accounts because they were lead to believe their funds would be “safe and protected” with unhindered access to these monies," the lawsuit said.

But it appears Simmons is finally ready to put the drama behind him and recover the brand.

“It was one of the most devastating days in my adult life,” Simmons said weeks after the scandal. “I know how hard people work to get money. I know how damaging it could be if people were not able to get their money … I’m deeply sorry.”

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