Wells Fargo Settles Class-Action Lawsuit With $1B Payment: Report

Wells Fargo & Co. WFC has reportedly agreed to pay a $1 billion settlement to resolve a shareholder lawsuit.
WFC was accused of overstating its progress in cleaning up after its 2016 fake accounts scandal, reported WSJ.
The report added that the shareholders claimed that Wells Fargo and its prior leadership misled them about the swiftness with which they were addressing governance concerns and risk-management systems.
According to the plaintiffs, after the 2016 crisis resulted in a series of regulatory rebukes, the bank worked slower to remedy the problems than stated publicly.
WSJ mentions that a spokeswoman for the bank stated that the agreement resolves a lawsuit "involving the company and several former executives and a director, who have not been with the company for several years. While we disagree with the allegations in this case, we are pleased to have resolved this matter."
The shareholder class action focuses on the years 2018 to 2020, after many of the bank's problems came to light before they were resolved.
In December 2022, Wells Fargo and authorities struck a $3.7 billion settlement for the company to address claims that its conduct affected nearly 16 million customers.
Price Action: WFC shares are trading lower by 0.41% at $38.61 premarket on Tuesday.
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