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

Finance news

Wells Fargo said on Friday it will pay $480 million to resolve a securities fraud lawsuit related to a sales scandal that surfaced in 2016.

The class action lawsuit in the District Court for the Northern District of California alleged that the bank made certain misstatements and omissions in disclosures related to its sales practices.

The lawsuit sought damages for investors who bought Wells Fargo stocks between February 2014 and September 2016.

It also accused the bank’s executives of trumpeting the bank’s success at “cross-selling”, while opening millions of accounts illegally.

Wells Fargo had denied the claims and allegations and said it entered into an agreement to avoid the cost and disruption of further litigation.

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