Settlement amount was fully accrued as of March 31, 2018
Wells Fargo & Company (NYSE: WFC) announced today that it has reached an
agreement in principle to resolve a consolidated securities fraud class
action in the United States District Court for the Northern District of
California alleging certain misstatements and omissions in the Company’s
disclosures related to sales practices matters.
As disclosed in its first quarter Form 10-Q filed on May 4, 2018, the
company will pay $480 million under the agreement in principle, which is
subject to confirmatory discovery by the plaintiff and final approval by
the court. The amount was fully accrued as of March 31, 2018. Wells
Fargo denies the claims and allegations in the action and entered into
the agreement in principle to avoid the cost and disruption of further
litigation.
“We are pleased to reach this agreement in principle and believe that
moving to put this case behind us is in the best interest of our team
members, customers, investors and other stakeholders,” said CEO Tim
Sloan. “We are making strong progress in our work to rebuild trust, and
this represents another step forward.”
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investments, mortgage, and consumer and
commercial finance through 8,200 locations, 13,000 ATMs, the internet
(wellsfargo.com) and mobile banking, and has offices in 42 countries and
territories to support customers who conduct business in the global
economy. With approximately 265,000 team members, Wells Fargo serves one
in three households in the United States. Wells Fargo & Company was
ranked No. 25 on Fortune’s 2017 rankings of America’s largest
corporations.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our future
financial performance and business. Because forward-looking statements
are based on our current expectations and assumptions regarding the
future, they are subject to inherent risks and uncertainties. Do not
unduly rely on forward-looking statements as actual results could differ
materially from expectations. Forward-looking statements speak only as
of the date made, and we do not undertake to update them to reflect
changes or events that occur after that date. For information about
factors that could cause actual results to differ materially from our
expectations, refer to our reports filed with the Securities and
Exchange Commission, including the “Forward-Looking Statements”
discussion in Wells Fargo’s most recent Quarterly Report on Form 10-Q as
well as to Wells Fargo’s other reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2017,
available on its website at www.sec.gov.
