Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • 20,000 AI Users at Travelers
  • Why Insurance Telematics Integrations Fail
  • AI on Trial: What Lawsuits Reveal About Casualty Exposure
  • 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
NYC to Install Red Light Cameras at 600 Intersections by Year End
Fake Lawyers Highlighted in OpenAI’s Threat Report Detailing ChatGPT Cybercrimes
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Uber Ballot Measure to Cap Personal Injury Fees, Limit Medical Damages Sparks Ire
Court Sharpens Causation Standard in All-Risk Policies in NC Church Mutual Case

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Why Claims AI Build vs. Buy Decisions So Often Miss the Mark
Viewpoint: How P/C Carriers Can Win the Next Decade With Tech + Talent
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
State Farm Inked $1.5B Underwriting Profit for 2025; HO Loss Persists
Hackers Used AI to Breach 600 Firewalls in Weeks, Amazon Says
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
RLI Now Has ‘A++’ Rating from AM Best
Disaster Preparedness, Responsible Tech Use Among NAIC 2026 Priorities
First Atlantic Hurricane Forecast for 2026 Suggests Season Close to 30-Year Norm
Reinsurance Program Could Wipe Out Need for Calif. FAIR Plan: Legal Exec
Telematics and Trust: How Usage-Based Insurance Is Transforming Auto Coverage
AI Claim Assistant Now Taking Auto Damage Claims Calls at Travelers

See all Top 50

From Skill to System: The Next Chapter in Insurance Claims Negotiation
Beyond Automation: The Emerging Role for Contextual AI in Insurance
10 Do’s and Don’ts of a Smart ORSA Report
The Future of HR Is AI

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, Ex-CEO Fail to Squash Shareholder Lawsuit Over Fake Accounts

Print Email
March 1, 2018 by Kartikay Mehrotra

A federal judge denied Wells Fargo & Co.’s request to dismiss a shareholder lawsuit triggered by the bank’s plummeting stock price after it admitted in 2016 to creating millions of fake accounts, starting the worst financial scandal in its modern history.

U.S. District Judge Jon Tigar in San Francisco ruled Tuesday that shareholders can proceed with most claims in a suit alleging the company and its current and former leaders misled shareholders about its opening of unauthorized accounts. Investors blame the company for the stock’s 9 percent drop after details of the scandal became public in September 2016.

Former Chief Executive Officer John Stumpf will continue to face claims of insider trading. Tigar dismissed insider-trading claims against four other executives. Among them is Carrie Tolstedt, who ran the division where the accounts were created. Claims against her may be amended and refiled as additional allegations against Wells Fargo and its leadership, including Securities Exchange Act violations, may continue.

“Stumpf concealed the fact that the company had made substantial findings of the unlawful activity and actual fraud in its community banking segment as part of its investigation, which not only exposed millions of customers to unlawful fees and potential identity theft, but put the company in the cross-hairs of federal investigations,” shareholder Gary Hefler alleged in the complaint.

Cross-Selling

Central to the dispute is Wells Fargo’s practice of cross-selling, or using the sale of one product to push others. Millions of those additional accounts were created without consumer approval, then reported to shareholders in artificially inflated quarterly reports, according to the complaint. The bank and its executives’ statements “about the success of Wells Fargo’s cross-selling and its commitment to providing value for customers were both material and false or misleading,” Tigar wrote in the ruling.

“We disagree with the allegations in the complaint,” Ancel Martinez, a spokesman for the bank, said in an emailed statement. “We continue to take decisive steps to rebuild the trust of our customers, team members, community partners and shareholders and are focused on building a better Wells Fargo.”

The investor who sued seeks class-action status on behalf of all shareholders from Feb. 26, 2014, to Sept. 15, 2016.

Tigar linked the order to a similar derivative action in his court against Wells Fargo, in which he also ruled that shareholders may proceed with a suit alleging the company’s top brass “repeatedly and brazenly” failed to serve their best interests. That complaint properly laid out evidence showing executives and directors made false statements about the scheme in the bank’s filings to the U.S. Securities and Exchange Commission.

The shareholder case is Hefler v. Wells Fargo & Co., 3:16-cv-05479, U.S. District Court, Northern District of California (San Francisco).

Copyright 2026 Bloomberg.
Print Email
Claims / LegalClaims & ReservingCommercial LinesLitigation/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.

Telematics and Trust: How Usage-Based Insurance Is Transforming Auto Coverage
Viewpoint: Runoff Specialists Have Evolved Into Key Strategic Partners for Insurers
Machine Learning for Mutuals: What’s Working, What’s Not, and What’s Next
State Farm Inked $1.5B Underwriting Profit for 2025; HO Loss Persists

Related Articles

Wells Fargo Reportedly Risks Record Fine From U.S. Consumer Watchdog for Various Abuses
Wells Fargo Could Get $1B Fine to Resolve Auto Insurance, Mortgage Lending Abuses
Wells Fargo Will Pay $480M to Resolve Fake-Accounts Lawsuit
Hub International Will Acquire Wells Fargo’s Crop Insurance Broker Business
Wells Fargo Will Get Out of Personal Insurance Business
Wells Fargo Suit Alleges Bank Encouraged Use of Hidden Fees in Finance Programs
Wells Fargo Risks Calif. Suspension of Licenses Over Insurance Sales Practice Controversy
Wells Fargo Settles Phony Bank Account Scandal for $142M
Judge Rejects Wells Fargo Bid to End Predatory Lending Lawsuit

Our Contributors

Gary McGeddyLessons From 25 Years Leading Accident & Health at Crum & Forster
Laura BoettcherGender Balance as a Business Strategy
Chad LangfordWhy Claims AI Build vs. Buy Decisions So Often Miss the Mark
Leslie SapienzaReal Customer Connections: What Valentine’s Day Teaches Insurers
Daniel HofmeisterViewpoint: Runoff Specialists Have Evolved Into Key Strategic Partners for Insurers
Kate DombrowskiFrom Skill to System: The Next Chapter in Insurance Claims Negotiation
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Our Contributors

Leslie SapienzaReal Customer Connections: What Valentine’s Day Teaches InsurersChad LangfordWhy Claims AI Build vs. Buy Decisions So Often Miss the MarkKate DombrowskiFrom Skill to System: The Next Chapter in Insurance Claims NegotiationDaniel HofmeisterViewpoint: Runoff Specialists Have Evolved Into Key Strategic Partners for InsurersSee All Our Contributors

Latest

  • NYC to Install Red Light Cameras at 600 Intersections by Year End
  • Fake Lawyers Highlighted in OpenAI’s Threat Report Detailing ChatGPT Cybercrimes
  • Uber Ballot Measure to Cap Personal Injury Fees, Limit Medical Damages Sparks Ire
  • Why Claims AI Build vs. Buy Decisions So Often Miss the Mark
  • Court Sharpens Causation Standard in All-Risk Policies in NC Church Mutual Case
  • State Farm Inked $1.5B Underwriting Profit for 2025; HO Loss Persists
  • Hackers Used AI to Breach 600 Firewalls in Weeks, Amazon Says
  • More Paid Time Off Keeps U.S. Workers From Quitting: Study
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • 20,000 AI Users at Travelers
  • Why Insurance Telematics Integrations Fail
  • AI on Trial: What Lawsuits Reveal About Casualty Exposure
  • How to Fix Missing Claims Skill: Negotiation

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