Wells Fargo Reaches $1 Bln Settlement To Resolve Federal Securities Class Action Lawsuit
(RTTNews) - Law firm Bernstein Litowitz Berger & Grossmann (BLB&G) announced Tuesday that it has reached a settlement agreement on behalf of its clients and a class of investors with Wells Fargo & Co (WFC), which has agreed to pay $1 billion in cash to resolve a federal securities class action lawsuit in the United States.
The action, In re Wells Fargo & Company Securities Litigation, No. 20-CV-04494 (GHW), is pending in the U.S. District Court for the Southern District of New York before Judge Gregory Woods.
The action alleges that Wells Fargo issued false and misleading statements to investors regarding the status of Wells Fargo's compliance with regulatory Consent Orders requiring the bank to remedy serious risk management deficiencies.
Wells Fargo's investors were harmed after a series of disclosures revealed that Wells Fargo had misrepresented its compliance with those orders, causing a decline in Wells Fargo's stock price.
The $1 billion settlement was reached after three years of hard-fought litigation and was achieved with the assistance of a respected mediator, former U.S. District Judge Layn Phillips.
If approved by Judge Woods, the settlement will be among the top six U.S. securities class action settlements in the past decade and among the top 17 of all time.
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