Wells Fargo & Co. will pay $142 million in a class action settlement over fraudulent account generation. The San Francisco-based bank has been involved since September in a scandal over the generation of more than 2 million deposit and credit card accounts that were created without customer knowledge. Originally, a $110 million class action settlement was agreed to in March, but Wells Fargo has extended the class period for the settlement to May 2002. This adds another $32 million to the settlement.
The settlement is just the latest payout that Wells Fargo has had to make since its account generation scandal became public in September of last year. Wells agreed to pay $185 million in a settlement with the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and the Los Angeles City Attorney’s Office over claims that the bank’s aggressive sales targets and compensation plans drove employees to create more than 2 million deposit and credit card accounts that may not have been authorized by existing customers.
The March settlement in class action litigation over the Wells Fargo sales practices scandal brought to a close 12 separate lawsuits filed against the bank. The original proposed settlement class included anyone who claimed Wells Fargo opened an account in their name without consent, enrolled them in a product or service, or submitted an application for a product or service in their name without consent between Jan. 1, 2009, and the execution of the settlement.
However, since the settlement was reached, an internal report from Wells Fargo found that the bank had known about problematic sales practices in its retail banking unit since at least 2002.
This conduct by a bank is shocking and it can’t be tolerated. The plaintiffs are represented by Derek W. Loeser, Gretchen Freeman Cappio, Daniel P. Mensher and Matthew J. Preusch of Keller Rohrback LLP. Wells Fargo is represented by David H. Fry and Erin J. Cox of Munger Tolles & Olson LLP. The case in which the settlement was reached is Jabbari et. al. v. Wells Fargo & Co. et al. (case number 3:15-cv-02159) in the U.S. District Court for the Northern District of California.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.