$320M Wells Fargo Derivative Suit Settlement Granted First Round of Approval

Securities Fraud

A California federal judge has granted preliminary approval to a proposed $320 million settlement that would end shareholders’ derivative litigation relating to Wells Fargo’s fake accounts scandal. Plaintiffs in the suit, including the Fire & Police Pension Association of Colorado and the City of Birmingham Retirement and Relief System allege that since at least 2011, the Board and executive management of Wells Fargo knew or consciously disregarded that its employees were illicitly creating millions of deposit and credit card accounts for their customers, without those customers’ consent, in order to meet aggressive sales goals. [Read more…]

Number of Unauthorized Wells Fargo Bank Accounts Significantly Larger Than Initially Reported

Unauthorized Wells Fargo Bank Accounts Significantly Larger Than Initially Reported

Court documents included as part of an imminent class action settlement with Wells Fargo Bank indicate that the banking giant created 1.4 million more phony bank and credit card accounts than it had previously reported. As Law360 notes, “The San Francisco-based bank and a class of account holders estimate that between 2002 and 2017 Wells Fargo employees allegedly opened approximately 3.5 million unauthorized accounts, replacing the previous 2.1 million estimate.”
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Wells Fargo Seeking to Force Defrauded Customers into Arbitration in Attempt to Sidestep Lawsuits over False Accounts Scandal

Wells Fargo Seeking to Force Defrauded Customers into Arbitration in Attempt to Sidestep Lawsuits over False Accounts Scandal

Banking giant Wells Fargo is attempting to sidestep a multitude of fraud lawsuits by forcing banking customers instead into private arbitration. Under the bank’s widely-reported false accounts scandal, some two million sham accounts were opened under customers’ names without their knowledge or consent. As noted by the New York Times, “This is not the first time Wells Fargo has been accused of trying to use arbitration to its advantage.” [Read more…]