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Wells Fargo settlement overview:
- Who: Wells Fargo has agreed to pay $1 billion to end claims brought by shareholders.
- Why: Shareholders claimed Wells Fargo repeatedly made misleading statements to them about its compliance with federal regulators investigating its role in a fake-account opening scheme that was brought to light in 2016.
- Where: The Wells Fargo settlement is nationwide.
- What are my options: Try EnerBank for home improvement lending options.
Wells Fargo has agreed to a $1 billion settlement to resolve a lawsuit claiming it misled shareholders about its compliance with federal regulators investigating the bank over a fake-account opening scheme that surfaced in 2016.
Since the scandal — which involved Wells Fargo employees opening millions of illegal accounts — came to light, the bank has repeatedly been sanctioned by federal regulators over alleged violations of consumer protection laws, ABC News reports.
The scheme reportedly involved Wells Fargo employees opening illegal accounts as a way to meet irrational sales goals, with the inflated sales figures ultimately causing the bank’s stock to become artificially inflated.
The Wells Fargo employees’ actions also allegedly damaged customers’ credit scores and injured some consumers financially, on account of subsequent fees, ABC News reports.
Shareholders, meanwhile, reportedly argued Wells Fargo and its senior executives repeatedly misled them between May 2018 and March 2020 by allegedly stating federal regulators were satisfied with the banks’ progress under consent orders and that the asset cap placed on it would be removed in a timely fashion.
Wells Fargo remains under Federal Reserve order not to grow its business
As it stands, Wells Fargo remains under order by the Federal Reserve not to grow its business prior to the agency determining the bank’s internal oversight problems have been adequately resolved, ABC News reports.
The order was reportedly originally put in place in 2018, and, at that time, was only expected to remain in effect for one or two years. However, Wells Fargo has reportedly since been found to have committed additional consumer protection law violations.
Wells Fargo has also paid billions of dollars in fines to federal and state regulators since the scandal, according to ABC News, which reports the bank has also since reshuffled its board of directors and seen two CEOs — along with other top-level executives — leave the company.
A separate class action lawsuit was filed against Wells Fargo last month by consumers arguing the bank knowingly allowed scam-running companies to open bank accounts with them.
Also last month, Wells Fargo sought to dismiss a class action lawsuit accusing the bank of falsely promising that it would interview diverse job candidates.
Were you affected by the Wells Fargo fake-account opening scandal? Let us know in the comments.
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10 thoughts onWells Fargo to settle shareholder lawsuit for $1B
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Add me wellsfargo stay taking money
Wells Fargo is a scandalous moneygrubbing banking company that hides behind their self righteousness and legal department.
I had started an account with clear intentions and definitions, A) to have a CD that would earn interest for myself, by money that was provided solely by myself, B) and to help another person be able to establish a loan and build credit. The monies, without my knowledge or consent were labeled as a “Joint account” with her being identified as the primary and receiving all / only documentation, the CD was set on a three month term or cycle (and when the loan would have taken many more month or years to satisfy), only to justify and protect their liability and did absolutely nothing to protect my investment and allowed the other party to satisfy her loan (at the end of the three month term) and subsequently steal my money. * If I had wanted to give her my money, I didn’t need to place it in a bank and wait three months to do it. As far as I am concerned, this is as corrupt as any of Wells Fargo’s other scandals that have come to light over the years, and only because whistle blowers and proper authorities have joined in to identified and forced them to take responsibility.
Add me please
Wells Fargo has allowed Boost a mobile to come into my account even after card was shutdown and clean me out, Won’t give me the ” Courtesy loan ” until my claim is finished being investigated” and their 7-10 business days keeps turning over and not keeping the original claims date” When Boost mobile took out the 1st time they wouldn’t stop my debit card, told me no reason to” only to have them hit me 2 more times, then finally I said ” Close it all down to Boost mobile, I even got my new debit card in mail!!” And they still let them take money out of my account.!! I’m not a idiot, I’m 63, disabled Woman on Social Security who didn’t get to pay her bills this month?? They owe me and I am getting the hell out as soon as I get my money. If I get my money.
I was getting a ridiculous amount of overdraft charges was this included in a class action suit
Thy stole from me and made me feel like a fool
10 years have passed since the catastrophic loss. No mediation or indemnification only frustration and intimidation.