Wells Fargo has agreed to pay $300 million to settle a lawsuit brought by shareholders who claim the company pushed unneeded insurance policies on customers and hid it from investors.
The complaint claims Wells Fargo knew of the issues but failed to disclose them, causing the price of the bank's stock to "trade at artificially inflated prices" between the time the issues became public and when the bank acknowledged them.
Then-Wells Fargo and Company CEO Timothy Sloan testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill March 12, 2019 in Washington, DC. Wells Fargo disclosed the issues in July 2017, saying that it had learned of the problems a year prior. The plaintiffs sued in 2018, alleging that former CEO Timothy Sloan misled them when he said in November 2016 that he was "not aware of any issues" relating to the sales practices at the bank.
Wells Fargo has denied any wrongdoing. A spokesperson told Reuters, "While we disagree with the allegations in this case, we are pleased to have resolved this legacy issue."
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