12:19 PM EST, 01/02/2025 (MT Newswires) -- (Updates with Branch Messenger's response in the fourth paragraph.)

The Consumer Financial Protection Bureau said Monday it has sued Walmart ( WMT ) and Branch Messenger for allegedly forcing delivery drivers to use "costly" deposit accounts to get paid.

The regulator also said the companies deceived workers about how they could access their earnings. It also alleges drivers paid more than $10 million in junk fees to Branch to instantly transfer earnings to an account of their choice.

"The CFPB's rushed lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law," a Walmart ( WMT ) spokesperson said to MT Newswires via email. "The CFPB never allowed Walmart ( WMT ) a fair opportunity to present its case during their rushed investigation. We look forward to vigorously defending the Company before a court that, unlike the CFPB, honors the due process of law."

Branch Messenger told MT Newswires it strongly disagrees with the CFPB's lawsuit. "Branch has provided Walmart ( WMT ) and their driver partners valuable services allowing quick and easy access to funds via their business accounts - a key fact the Bureau's press release omits," Branch said.

It added that the lawsuit "misstates the law and facts, and includes intentional omissions to mask the bureau's clear overreach," claiming the CFPB "refused to engage with Branch in any meaningful way about this matter."

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