Wells Fargo spokesperson confirms $1 bln settlement in shareholder suit related to fake accounts scandal

Wells Fargo & Co.
WFC,
-0.59%
has settled a shareholder lawsuit stemming from its fake accounts scandal from 2016 with a payment of $1 billion, a spokesperson from the bank confirmed in an email to MarketWatch. The Wall Street Journal initially reported the settlement citing court documents. “This agreement resolves a consolidated securities class action lawsuit involving the company and several former executives and a director, who have not been with the company for several years,” a bank spokesperson said. “While we disagree with the allegations in this case, we are pleased to have resolved this matter.” The fake accounts scandal that began in 2016 centered on fake bank accounts created by bank employees trying to meet lofty sales targets, without the consent of customers. Shares of Wells Fargo are down 0.6% on Tuesday and have lost 6.7% of their value in 2023, compared to a 7.3% gain by the S&P 500
SPX,
-0.33%.