04:08 PM EST, 03/04/2025 (MT Newswires) -- The US Consumer Financial Protection Bureau on Tuesday dismissed its lawsuit against Bank of America ( BAC ) , JPMorgan Chase ( JPM ) and Wells Fargo ( WFC ) regarding transactions on the Zelle payments network.

In a brief filing, the CFPB said it dismissed the action, including against Zelle operator Early Warning Services, "with prejudice."

The regulator's lawsuit, filed late last year, blamed the four companies for not being able to protect consumers against alleged "widespread fraud" on the Zelle network. It said that the defendants breached federal law through various "critical failures," calling Zelle's identity verification methods "limited."

Zelle is co-owned by seven banks, including JPMorgan ( JPM ), Bank of America ( BAC ) and Wells Fargo ( WFC ).

A JPMorgan ( JPM ) spokesperson said in an email to MT Newswires that banks play a "crucial role in scam prevention and consumer education, but this is a national security problem that requires a collective effort across the public and private sectors."

"We welcome the CFPB's decision to drop its lawsuit against the Zelle network," a Zelle spokesperson said in an email to MT Newswires. "As we've said before, this lawsuit was without merit, and legally and factually flawed."

Bank of America ( BAC ) and Wells Fargo ( WFC ) did not immediately respond to requests for comment.

Shares of BofA closed 6.3% lower on Tuesday, while those of Wells Fargo ( WFC ) declined 4.9%. JPMorgan ( JPM ) fell 4% on a day that saw broader equity markets decline amid an intensifying trade war.

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