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

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

1779464913 Law
May 22, 2026
Blue Owl Caps Redemptions as Investors Seek Billions in Withdrawals from Private Credit Funds

Blue Owl Capital faced a sharp rise in redemption requests during the first quarter as investors attempted to withdraw approximately $5.4 billion from two of the firm's largest private credit funds, according to reporting by the Wall Street Journal.

L
May 21, 2026
Edward Jones Faces Federal Privacy Lawsuits Over Alleged Data Sharing With Tech Companies

Edward Jones is facing multiple lawsuits alleging that the firm improperly shared clients' personal and financial information with third-party technology companies for targeted advertising purposes, according to reporting by Financial Planning.

1779287606 Law
May 20, 2026
FINRA Sanctions Ameriprise for Supervisory Failures in Variable Annuity Exchanges

The Financial Industry Regulatory Authority (FINRA) has fined Ameriprise Financial Services and ordered restitution to resolve allegations that the firm failed to adequately supervise certain variable annuity exchange recommendations.