Wells Fargo Reaches Agreement in Principle to Resolve Consolidated Securities Fraud Class Action
May 04 2018 - 4:17PM
Business Wire
Settlement amount was fully accrued as of March 31, 2018
Wells Fargo & Company (NYSE: WFC) announced today that it
has reached an agreement in principle to resolve a consolidated
securities fraud class action in the United States District Court
for the Northern District of California alleging certain
misstatements and omissions in the Company’s disclosures related to
sales practices matters.
As disclosed in its first quarter Form 10-Q filed on May 4,
2018, the company will pay $480 million under the agreement in
principle, which is subject to confirmatory discovery by the
plaintiff and final approval by the court. The amount was fully
accrued as of March 31, 2018. Wells Fargo denies the claims and
allegations in the action and entered into the agreement in
principle to avoid the cost and disruption of further
litigation.
“We are pleased to reach this agreement in principle and believe
that moving to put this case behind us is in the best interest of
our team members, customers, investors and other stakeholders,”
said CEO Tim Sloan. “We are making strong progress in our work to
rebuild trust, and this represents another step forward.”
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
investments, mortgage, and consumer and commercial finance through
8,200 locations, 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 42 countries and territories to
support customers who conduct business in the global economy. With
approximately 265,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was
ranked No. 25 on Fortune’s 2017 rankings of America’s largest
corporations.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our
future financial performance and business. Because forward-looking
statements are based on our current expectations and assumptions
regarding the future, they are subject to inherent risks and
uncertainties. Do not unduly rely on forward-looking statements as
actual results could differ materially from expectations.
Forward-looking statements speak only as of the date made, and we
do not undertake to update them to reflect changes or events that
occur after that date. For information about factors that could
cause actual results to differ materially from our expectations,
refer to our reports filed with the Securities and Exchange
Commission, including the “Forward-Looking Statements” discussion
in Wells Fargo’s most recent Quarterly Report on Form 10-Q as well
as to Wells Fargo’s other reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors”
in our Annual Report on Form 10-K for the year ended December 31,
2017, available on its website at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20180504005846/en/
Media ContactPeter Gilchrist,
704-715-3213peter.gilchrist@wellsfargo.comorInvestor
RelationsJohn Campbell,
415-396-0523john.m.campbell@wellsfargo.com
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