Wells Fargo Settles Securities Fraud Class Action for $480 Million
May 04 2018 - 5:18PM
Dow Jones News
By Emily Glazer
Wells Fargo & Co. said Friday it reached a $480 million
preliminary settlement agreement in a securities fraud class-action
suit. The bank reached the agreement in principle to resolve a suit
regarding alleged "misstatements and omissions" in its disclosures
relating to sales practices.
The bank said the amount was fully accrued for as of March 31.
The suit is in the U.S. District Court for the Northern District of
California.
The $480 million settlement is subject to final approval by the
court. The bank added that it "denies the claims and allegations in
the action and entered into the agreement in principle to avoid the
cost and disruption of further litigation."
The settlement comes at a difficult time for Wells Fargo. Last
month it settled with two of its key regulators for $1 billion over
its failure to manage risk, which caused it to adjust its earnings
down $800 million. And in February the Federal Reserve capped the
bank's assets in an unprecedented enforcement action, also relating
to its inability to manage risk.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
May 04, 2018 17:03 ET (21:03 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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