Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Does Spending More $ on Defense Reduce Indemnity?
  • Growth Going to be Hard: Abel Talks GEICO, Berkshire Tech ...
  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • Carrier Management
  • C-Suite
  • News
  • Research
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Join
  • Login
  • Boardroom Agenda
  • CEO / Chief Executive
  • CFO / Financial
  • Underwriting
  • CTO / Technology
  • Risk
  • Brand Management & Sales
  • Investment Officers
  • Claims / Legal
  • Talent Management
Waymo Suspends Freeway Rides Across U.S., Pauses Atlanta Operations
Cyber Insurance Market Faces Pressure as Claims Severity Climbs
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
45M Americans Planning Memorial Day Weekend Getaways: AAA
Years Before UPS Plane Crash, 10 Similar Flaws Didn’t Raise Alarm

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
For Carriers, AI Can Now Mean Hyper-Personalized Customer Service, Leaders Say
Executive Viewpoint: One AI Won’t Save You
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
U.S. P/C Insurers Post Biggest Q1 Underwriting Profit in 25 Years
U.S. Personal Lines Insurers Ask for Less Rate After Period of Catch-Up
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Who Will Be California’s Next Insurance Commissioner?
The Race for California Insurance Commissioner: Meet Steve Bradford
Progressive Is Biggest Auto Insurer, Surpassing State Farm: S&P GMI
The Big Dog Is Off the Tech Porch: State Farm as ‘Next Gen Good Neighbor’
Who Will Be California’s Next Insurance Commissioner?
Insurance Data and the Complex Loops Redefining Casualty Risk

See all Top 50

Executive Viewpoint: What Telematics Got Wrong and What It Means for Commercial Auto
Automation Theater: Why Carrier AI Investments Aren’t Showing Up in the P&L
Why and How Homeowners Underwriting Must Change
How Your ORSA Can Be Retooled for a Competitive Advantage

See all Members Only Content

Benefits

  • News for the P/C Insurance C-Suite - Focused reporting from reliable sources and experienced financial journalists.
  • Research and Analysis Not Found Elsewhere - Exclusive content from researchers think tanks, industry experts and respected analysts.
  • High-Profile Peers - Interviews with thought leaders in the global and U.S. insurance industry.

Online Access

Complete, unrestricted access to the popular CarrierManagement.com website, which provides insurance company C-suite executives with daily news, white papers, advice, instruction and editorial on how to manage insurance companies more efficiently and more effectively.

Wells Fargo Will Settle Lawsuit Over Account Abuses With $110M Payment

Print Email
March 28, 2017 by Jonathan Stempel, Nikhil Subba and Swetha Gopinath

Wells Fargo & Co said it agreed to pay $110 million to settle a lawsuit by customers challenging its opening of accounts without their permission, a practice that led to a scandal that cost the bank’s chief executive his job.

The bank said on Tuesday it expects the settlement to resolve claims in 11 other pending class actions, and will cover claims between Jan. 1, 2009, through the date the agreement is executed.

The settlement agreement is yet to be approved by the court.

After attorneys’ fees and costs of administration, claimants will be reimbursed for any wrong fees, Wells Fargo said on Tuesday.

The remaining amount will be distributed to the claimants, based on the number and kinds of unauthorized accounts or services claimed, the bank said.

The lawsuit resolves claims that Wells Fargo’s high-pressure culture drove branch workers needing to meet sales quotas to open unauthorized accounts, including with forged signatures.

Customers said this saddled them with accounts they did not need or want, and fees they knew nothing about.

The lawsuit dates from May 2015, sixteen months before Wells Fargo agreed to pay $185 million in penalties to settle regulatory charges over the sham accounts, estimated to number as many as 2 million.

That settlement with the U.S. Consumer Financial Protection Bureau and Los Angeles City Attorney Mike Feuer prompted national outrage, leading to the departure in October of the bank’s longtime chief executive, John Stumpf.

The named plaintiffs in the lawsuit are Shahriar Jabbari, a Californian, and Kaylee Heffelfinger, from Arizona.

They believed they each had two accounts at Wells Fargo, but said the bank opened a respective nine and seven accounts for them, according to court papers.

Wells Fargo, which has abandoned sales quotas, had already set aside enough money to cover the $110 million settlement.

Its new chief executive, Tim Sloan, in January told analysts that the bank still has “a lot of work to do” to rebuild trust with customers, employees and other stakeholders.

“This agreement is another step in our journey to make things right with customers and rebuild trust,” Sloan said in a statement on Tuesday.

The case is Jabbari et al v. Wells Fargo & Co et al, U.S. District Court, Northern District of California, No. 15-02159.

Copyright 2026 Reuters. Click for restrictions.
Print Email
Claims / LegalGlobal EconomyLitigation/Liability TrendsMarketsNewsThe C-SuiteU.S.

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

With Customer Reviews Increasingly Polarized, Communication Is Key: Trustpilot
The Race for California Insurance Commissioner: Meet Patrick Wolff
Who Will Be California’s Next Insurance Commissioner?
Insurance Data and the Complex Loops Redefining Casualty Risk

Related Articles

Prudential May Seek Cover From Wells Fargo for Account Scandal Costs
Wells Fargo Settles Racial Bias Broker Lawsuit
Wells Fargo Board Blames Ex-CEO, Other Exec for Much of Fake Account Scandal
Wells Fargo Believes Customers Properly Reimbursed in Fake Account Scandal
Wells Fargo Will Pay $50M to Settle Suit Over Homeowners Fees
Wells Fargo Phony Account Scandal May Be Bigger Than Previously Thought
Wells Fargo Account Scandal Draws Calif. Criminal Probe
Avoiding Lawsuit, United Settles With Flier Dragged From Plane
Wells Fargo Investors Urged to Unload Most Board Members Over Fake Account Scandal

Our Contributors

Chris DiMartinoWhy and How Homeowners Underwriting Must Change
Nick KramerAutomation Theater: Why Carrier AI Investments Aren’t Showing Up in the P&L
Ross SinclairViewpoint: Why Speedy Payouts Matter in EU Plan to Close Insurance Protection Gap
Dan FreedmanExecutive Viewpoint: What Telematics Got Wrong and What It Means for Commercial Auto
Brian NordykeAutomation Theater: Why Carrier AI Investments Aren’t Showing Up in the P&L
Jeff CohenInsurance Data and the Complex Loops Redefining Casualty Risk
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Latest Magazine

Carrier Management magazine
View All

Research & Whitepapers

  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Does Spending More $ on Defense Reduce Indemnity?
  • Growth Going to be Hard: Abel Talks GEICO, Berkshire Tech ...
  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • How Modern is Modern Enough?

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • Cytora
  • HazardHub
  • Indico Data
  • Majesco
  • Verisk
  • Vertafore

Connect with us

  • Email Newsletters
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier Management iconCarrier Management
  • Insurance Journal iconInsurance Journal
  • Claims Journal iconClaims Journal
  • IJ Academy iconInsurance Journal Academy
  • Insurance Journal TV iconInsurance Journal TV
  • MyNewMarkets.com iconMyNewMarkets.com
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map