Wells Fargo to pay $480 million to resolve lawsuit related to sales scandal

Wells Fargo to pay $480 million to resolve lawsuit related to sales scandal

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(Reuters) – Wells Fargo & Co mentioned on Friday it should pay $480 million to resolve a securities fraud lawsuit associated to a gross sales scandal that surfaced in 2016.

FILE PHOTO: A Wells Fargo financial institution signal is pictured in downtown Los Angeles, California, U.S. August 10, 2017. REUTERS/Mike Blake/File Photograph

The category motion lawsuit within the District Courtroom for the Northern District of California alleged that the financial institution made sure misstatements and omissions in disclosures associated to its gross sales practices.

The lawsuit sought damages for traders who purchased Wells Fargo shares between February 2014 and September 2016.

It additionally accused the financial institution’s executives of trumpeting the financial institution’s success at “cross-selling”, whereas opening hundreds of thousands of accounts illegally.

Wells Fargo had denied the claims and allegations and mentioned it entered into an settlement to keep away from the price and disruption of additional litigation.

Reporting by Diptendu Lahiri in Bengaluru; Enhancing by Arun Koyyur

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