Wells Fargo To Pay $480 Million In Settlement With Shareholders
A California court approved a $480 million settlement with Wells Fargo and its shareholders related to sham accounts the bank admitted to creating. A judge gave the final approval Tuesday for shareholders who claim they were misled by disclosures Wells Fargo made about the accounts.
The deal compensates investors who bought stock in Wells Fargo from February 2014 to September 2016, the month when a federal investigation found that bank employees under pressure to boost sales had created millions of accounts without permission from customers. Regulators fined the company $185 million.
In 2017, the bank admitted that the number of sham accounts opened may have totaled about 3.5 million.
The shareholder lawsuit follows a separate $142 million deal approved in June with bank customers who said phony accounts were opened in their name.
In a statement Wednesday, Wells Fargo said it’s “pleased the case has received final approval by the court.”
“The company remains focused on rebuilding trust and transforming into the most customer-focused, efficient, and innovative Wells Fargo ever, for all of its stakeholders,” the company said.
But company spokesman Peter Gilchrist told Courthouse News that Wells Fargo “did not admit or deny” shareholders’ allegations that the company misled investors.