Wells Fargo settles $110m customer lawsuit in effort to "make things right with customers"

Oliver Gill
Follow Oliver
Yahoo Finance All Markets Summit
Wells Fargo president Tim Sloan has been given the task of steadying the ship at the US lender (Source: Getty)

Wells Fargo has agreed to pay $110m (£89m) in a settlement of a customer lawsuit brought against the bank in the wake of an account opening scandal.

The US lender said it expects the settlement to draw a line under a further 11 similar class action claims.

In September, Wells Fargo was fined $185m by US regulators for illegally opening around 2m debit and credit accounts in the names of customers without their knowledge.

The scandal led to the bank’s chief executive John Stumpf quitting his job, handing the reigns over to Wells Fargo's president Tim Sloan.

Read more: Wells Fargo sets aside $1.7bn for legal costs over accounts scandal

Reflecting on the latest settlement, Sloan said: "This agreement is another step in our journey to make things right with customers and rebuild trust.”

We want to ensure that each customer impacted by our sales practices issue has every opportunity for remediation, and this agreement presents an additional option.

We continue to encourage customers to contact us directly so that we can act quickly to refund fees and address any concerns.

The overnight settlement of the class action, which was originally filed by individuals at a district court in California, is subject to court approval.

Read more: Stumpf quits Wells Fargo with immediate effect

Lawyer and administrator costs will be paid first from the $110m pot with claimants reimbursed any fees charged to them after accounts were opened.

The balance remaining from the settlement will be distributed to the claimants based on the number and kind of accounts opened.

Related articles