H&R Block Inc. agreed to pay as much as $20.2 million to customers that bought its Express IRAs to settle a federal lawsuit that alleged the relatively small accounts were virtually guaranteed to lose money because they charged high fees.

The settlement, which was announced Monday by New York Attorney General Andrew Cuomo, said that the U.S. tax preparer will refund $11.4 million to $19.4 million in fees and pay $750,000 in fines to the state. The Kansas City, Mo., company will also convert the Express IRA accounts into a new retirement account program that doesn’t charge fees, according to a statement by Cuomo.

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