Wednesday, June 7, 2023
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Wells Fargo agrees to $1 billion shareholder settlement

Wells Fargo has agreed to pay $1 billion to settle a shareholder lawsuit stemming from its years-old scandal over sham accounts, based on statements from the financial institution and the plaintiffs attorneys.

Reuters reported that the settlement was filed late Monday in federal court docket in Manhattan, the place a bunch of shareholders has been in litigation with the financial institution for 3 years.

“This settlement resolves a consolidated securities class-action lawsuit involving the corporate and several other former executives and a director, who haven’t been with the corporate for a number of years,” a Wells Fargo spokesperson stated. “Whereas we disagree with the allegations on this case, we’re happy to have resolved this matter.”

The plaintiffs included a number of pension directors who had accused Wells Fargo of deceptive them concerning the extent of its compliance with consent orders imposed by banking regulators. The settlement nonetheless needs to be accepted by a decide.

“We’re happy that Wells Fargo’s new administration is transferring ahead by resolving this vital litigation associated to the financial institution’s previous actions and that we had been in a position to obtain a superb settlement for buyers,” Max Berger, an lawyer representing shareholders, stated in a press release.

This story is growing and might be up to date.




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