ÍøÆØ³Ô¹Ïlls Fargo Pays $1 Billion to Settle Class-Action Lawsuit
From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï
ÍøÆØ³Ô¹Ïlls Fargo has agreed to pay $1 billion to settle a shareholder lawsuit that accused the company of making misleading statements related to its compliance with federal consent orders following the unauthorized customer account scandal in 2016.
The settlement qualifies as one of the top six largest securities class-action settlements within the past decade. The investors initially filed suit against ÍøÆØ³Ô¹Ïlls Fargo in 2020 alleging that its former chief executive officer, Tim Sloan, and other executives made misleading statements while testifying in front of Congress. The investors further alleged that the executives painted “too rosy” of a picture regarding their dealings with regulators, such as failing to disclose that their initial reform plans had been rejected.
The proceeds of the class-action suit will be paid to investors who purchased ÍøÆØ³Ô¹Ïlls Fargo stock between February 2, 2018, and March 12, 2020. ÍøÆØ³Ô¹Ïlls Fargo previously agreed to pay $3 billion in 2020 to avoid criminal charges and settle with federal prosecutors, who were investigating more than a decade of widespread consumer abuses.
ÍøÆØ³Ô¹Ï LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.
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