Banking

Wells Fargo Faces Class Action Following Fraud Scandal

Those bogus bank accounts Wells Fargo allegedly opened are looking mighty expensive for the company.

Wells Fargo is now at the center of a class-action lawsuit stemming from the sham accounts scandal.

The class-action case is being brought by customers accusing the bank of fraud and recklessness. Filed on Friday (Sept. 16) in the U.S. District Court in Utah, the plaintiffs are seeking class-action status for a class of hundreds of thousands of customers across the country.

Just last week, Wells Fargo agreed to pay $185 million to settle regulatory charges. The scandal hinges on the bank opening some 2 million accounts without customers’ approval or knowledge, all to hit sales targets.

Federal prosecutors are investigating Wells Fargo’s practices. Chief Executive Officer John Stumpf will testify before Congress next week.

The three plaintiffs in the complaint said they were harmed by “abusive and fraudulent tactics” by Wells Fargo employees focused to “do whatever it takes” to meet sales quotas.

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