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Wells Fargo agrees to $1bn settlement over fake accounts lawsuit

Shareholders alleged Wells Fargo and its past leadership misled them about how swiftly they were fixing systems that didn't halt opening up of fake accounts

By

Ben Eisen

In December, Wells Fargo entered into a $3.7bn agreement with the Consumer Financial Protection Bureau to resolve allegations that its actions harmed more than 16 million people with deposit accounts, auto loans and mortgages
In December, Wells Fargo entered into a $3.7bn agreement with the Consumer Financial Protection Bureau to resolve allegations that its actions harmed more than 16 million people with deposit accounts, auto loans and mortgages Photo: LightRocket via Getty Images

Wells Fargo agreed to pay shareholders $1bn to settle a class-action lawsuit that accused the bank of overstating its progress in cleaning up after its 2016 fake accounts scandal.

The bank’s shareholders alleged Wells Fargo and its past leadership misled them about how swiftly they were fixing the governance issues and risk-management systems that failed to prevent the bank from opening up perhaps millions of phoney accounts.

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