The Bank Slate


Wells to pay $300M to settle shareholder lawsuit

Wells Fargo agreed to pay $300 million to settle a class-action lawsuit that claimed the San Francisco company did not tell investors it had knowingly charged unnecessary auto-collision protection insurance.

The settlement, which needs to be approved by the U.S. District Court for the Northern District of California, was disclosed in a press release by law firm Robbins Geller Rudman & Dowd, which represented the plaintiffs.

A trial in the case was scheduled to begin on Feb. 27.

Construction Laborers Pension Trust for Southern California is the lead plaintiff in this case.

The settlement comes weeks after the $1.9 trillion-asset Wells entered into a consent order and agreed to pay more than $3.7 billion to settle a range of claims by the Consumer Financial Protection Bureau.

Wells agreed to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty to address the CFPB’s concerns with auto lending, mortgages and deposit accounts.

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