Wells Fargo & Co agreed to pay $300 million to settle a shareholder lawsuit claiming the bank hid that it had pushed unnecessary insurance on auto loan customers, according to documents filed in U.S. court on Tuesday.
Scott Saham of Robbins Geller Rudman & Dowd, the law firm representing Wells Fargo shareholders, said the settlement "is part of remediating the entire spectrum of harm that you get in a complex fraud case."
Wells Fargo disclosed in July 2017 that hundreds of thousands of customers had been unnecessarily charged for "collateral protection insurance," which covers auto lenders when borrowers are uninsured. The bank said it had learned of concerns a year earlier. The bank also concealed auto insurance issues from the U.S. Senate Banking Committee in November 2016, the investors alleged.
Wells Fargo settled an auto borrower class action in 2019 for $386 million without admitting wrongdoing.
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