March 16, 2023
Wells Fargo has agreed to pay $1 billion to settle a class action lawsuit that accuses the bank of hurting investors by overstating how much progress it made fixing up its practices in the aftermath of its fake accounts scandal.
The settlement, if approved by the court, would be among the largest recoveries from a securities class action lawsuit of all time, according to the plaintiffs’ attorneys.
Plaintiffs include pension funds in Mississippi, Rhode Island and Louisiana.
“If approved, this settlement will help compensate hundreds of thousands of investors – state employees, nurses, teachers, police, firefighters and others – whose critical retirement savings were impacted by Wells Fargo’s fraudulent business practices,” Steven Toll, managing partner at Cohen Milstein Sellers & Toll, said in a Monday release.
Read Wells Fargo Agrees to Pay $1B to Settle Class Action Lawsuit Tied to Fake Accounts Scandal.