Wells Fargo & Co (WFC) Settles ‘Fake Accounts’ Lawsuit

Wells Fargo & Co (NYSE:WFC) has reached a settlement for the lawsuits it received regarding the fake accounts it created.

Wells FargoThousands of the company’s employees lost their jobs after creating false accounts that stole small sums of money from the accounts of real people in order to meet certain quotas imposed by the higher-ups at the company, which were unreasonably difficult to reach.

The class-action lawsuit came as a result of the 2 million accounts that were created and did not belong to any real person or entity. It was quite a costly mistake by Wells Fargo as former CEO John Schimpf resigned, and thousands of workers lost their job.

Now, the lawsuit has been settled, setting the bank back around $110 million, which will be distributed among the victims of this scam. This money is in addition to the refunds already offered by the company.

The decision came as Wells Fargo simply wanted to move forward with its business and avoid any further legal action. A notice will be sent out to company customers that will show them how to make a claim and get their piece of the pie.

Many workers expressed their anger at the company,  but stated that they will remain with Wells Fargo as the company fixes the fiasco.

WFC stock fell 0.3% on Wednesday.

Article printed from InvestorPlace Media, https://investorplace.com/2017/03/wells-fargo-co-wfc-2/.

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