Wells Fargo to pay $480 million to resolve lawsuit
related to sales scandal
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 [May 05, 2018]
(Reuters) - Wells Fargo & Co
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.
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A Wells Fargo bank sign is pictured in downtown Los Angeles,
California, U.S. August 10, 2017. REUTERS/Mike Blake/File Photo
Wells Fargo had denied the claims and allegations and said it entered into an
agreement to avoid the cost and disruption of further litigation.
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Arun Koyyur)
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