- Wells Fargo & Co. (NYSE: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.
- Photo Via Company
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