Wells Fargo has agreed to pay $480m to resolve a class action lawsuit brought by shareholders over alleged securities fraud.

The lawsuit alleged that the bank misstated or omitted certain details regarding its sales practices.

The bank refuted the charges saying that it signed the agreement in principle in order to “avoid the cost and disruption of further litigation”.

The lawsuit was filed in US federal court in the Northern District of California. The bank said that the agreement to resolve the lawsuit is in principle and is subject to approval by the court.

Wells Fargo CEO Tim Sloan said: “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. We are making strong progress in our work to rebuild trust, and this represents another step forward.”

Wells Fargo came under the scanner for the illegal sales practice of secretly opening unauthorised deposit and credit card accounts and was consequently fined $185m by federal and state regulators.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last month, the bank was fined $1bn by US regulators to settle charges of unsound practices in mortgage and auto lending businesses.