Tr?id=566623520170033&ev=PageView&noscript=1

Wells Fargo Pays $1 Billion to Settle Class-Action Lawsuit

Posted on May 19th, 2023 at 1:13 PM
Wells Fargo Pays $1 Billion to Settle Class-Action Lawsuit

From the desk of Jim Eccleston at Eccleston Law 

Wells Fargo has agreed to pay $1 billion to settle a shareholder lawsuit that accused the company of making misleading statements related to its compliance with federal consent orders following the unauthorized customer account scandal in 2016.

The settlement qualifies as one of the top six largest securities class-action settlements within the past decade. The investors initially filed suit against Wells Fargo in 2020 alleging that its former chief executive officer, Tim Sloan, and other executives made misleading statements while testifying in front of Congress. The investors further alleged that the executives painted “too rosy” of a picture regarding their dealings with regulators, such as failing to disclose that their initial reform plans had been rejected.

The proceeds of the class-action suit will be paid to investors who purchased Wells Fargo stock between February 2, 2018, and March 12, 2020. Wells Fargo previously agreed to pay $3 billion in 2020 to avoid criminal charges and settle with federal prosecutors, who were investigating more than a decade of widespread consumer abuses.

 

Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

1775837448 Law
April 10, 2026
FINRA Charges Former Pruco Securities Broker With Forging Annuity Applications to Generate Commissions

The Financial Industry Regulatory Authority (FINRA) has filed a complaint against former Pruco Securities broker Avinesh Shankar, accusing him of forging customer signatures on dozens of annuity applications in order to collect advance commissions.

1775751943 Law
April 9, 2026
Private Credit Funds Face Liquidity Strain as Redemption Requests Surge

Investor demand for liquidity has intensified across the private credit market, leaving billions in capital temporarily inaccessible due to withdrawal restrictions, according to AdvisorHub.

1775670322 Law
April 8, 2026
FinCEN Imposes $80 Million Penalty on Canaccord for AML Failures

The U.S.