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Wells Fargo & Co. agreed to pay $1 billion to shareholders as it seeks to settle a class-action lawsuit in connection with the lender’s 2016 unauthorised accounts scandal, as per the reports by Wall Street.
The report added that the preliminary settlement, disclosed in a court filing Monday, has to be approved in the next few months. The bank has been accused of overstating its progress in cleaning up after the issues.
A spokesperson of Wells Fargo, in a conversation with Wall Street, have stated that the payment will end the lawsuit which involves the company and several former executives and a director, who have not been a part of the company for several years. The source added that they disagree with the allegations against them, however, they are happy to resolve the matter.
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In 2020, Wells Fargo agreed to pay $3 billion in settlement of of U.S investigations into more than a decade of widespread consumers abuses. The investigation had found that the overly aggressive sales target had led thousands of employees to open millions of bogus accounts for customers and foist other products on them from 2022 to 2016.
