🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Wells Fargo faces proposed class action over bogus accounts

Published 09/16/2016, 07:05 PM
© Reuters. Wells Fargo branch is seen in the Chicago suburb of Evanston Illinois
WFC
-

By Karen Freifeld

NEW YORK (Reuters) - Wells Fargo (NYSE:WFC) & Co, embroiled in a scandal over the opening of sham accounts, was sued on Friday by customers who accused the bank of fraud and recklessness for its behavior.

The lawsuit was filed in the U.S. District Court in Utah, and seeks class-action status on behalf of hundreds of thousands of customers nationwide.

Wells Fargo did not immediately respond to requests for comment.

Last week, the San Francisco-based lender agreed to pay $190 million to settle regulatory charges that employees opened some 2 million accounts without customers' knowledge, in order to meet sales targets.

Wells Fargo, the country's third-largest bank by assets, has said it has fired 5,300 people over the matter and would eliminate sales goals in its retail banking on Jan. 1, 2017.

Federal prosecutors have begun examining Wells Fargo's practices, and the bank's Chief Executive Officer John Stumpf is scheduled to testify before Congress next week.

In the complaint, three plaintiffs said customers were hurt by "abusive and fraudulent tactics" used by employees who felt they had to "do whatever it takes," including selling products they did not need or want, to meet sales quotas.

It was not immediately clear how the three named plaintiffs were specifically harmed by the bank's alleged wrongdoing.

© Reuters. Wells Fargo branch is seen in the Chicago suburb of Evanston Illinois

The case is Mitchell et al v. Wells Fargo Bank NA et al, U.S. District Court, District of Utah, No. 16-00966.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.