Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Why Reciprocal Insurance Exchanges Are Back in Fashion
  • What Progressive and GEICO Q3 Results Reveal About Auto ...
  • How One MGU Grew Fivefold When Capacity Fled Cat-Prone ...
  • 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
EV Collision Claims Rebound as Expiring U.S. Government Tax Incentives Drive Sales
Zillow Deleting Home Climate Risk Scores Reveals Limits of Flood, Fire Data
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
OpenAI And Microsoft Sued Over Murder-Suicide Blamed on ChatGPT
Trump Signs Order Seeking to Limit State-Level AI Regulation

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
A Practical Blueprint: The Five Plays of an Innovation Culture
Chubb, The Hartford, Liberty and Travelers Team Up on Surety Tech Co. Launch
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
What to Expect in 2026: U.S. P/C Results More Like 2024
Truckers Who Fail English Tests Are Pulled Off Roads in Crackdown
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Viewpoint: Mapping Evolving Regulatory Terrain for MGAs, MGUs and Other DUAEs
Trump to Issue Order Creating National AI Rule
Texas ID Restrictions Could Prevent Illegal Immigrants in U.S. From Buying, Registering Vehicles
Chubb, The Hartford, Liberty and Travelers Team Up on Surety Tech Co. Launch
AM Best Downgrades State Farm Mutual Auto
Why Insurance Telematics Integrations Fail

See all Top 50

Rebuilding Negotiation Talent: Why This Skill Is Missing and How to Fix It
AI in Property/Casualty Insurance: Why Trusted Data Is the Missing Link
The Future of Knowledge in Insurance: From Training to AI-Powered Productivity
6 Warning Signs for Insurers: How to Anticipate, Respond to Pipe Freezes

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 Pay $480M to Resolve Fake-Accounts Lawsuit

Print Email
May 7, 2018 by Hannah Levitt

Wells Fargo & Co. agreed to pay $480 million to settle a class-action lawsuit in which investors accused the bank of securities fraud related to its fake-account scandal.

The settlement resolves the main class-action suit brought by shareholders targeting the bank’s allegedly deficient disclosures related to its sales practices. It had previously set aside reserves for the settlement, according to a regulatory filing Friday. Wells Fargo said in a statement that it denies the allegations in the suit.

“Moving to put this case behind us is in the best interest of our team members, customers, investors and other stakeholders,” Chief Executive Officer Tim Sloan said in the statement.

This is the latest cost for Wells Fargo from a consumer banking scandal that arose in September 2016. That issue, in which employees opened as many as 3.5 million bogus accounts, ultimately cost then-CEO John Stumpf his job. The bank still faces a bevy of other lawsuits on related matters.

Last month, the San Francisco-based bank settled with the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau for an unprecedented $1 billion to cover issues in auto lending and mortgages. In February, the Federal Reserve imposed a sanction prohibiting the bank from boosting total assets beyond their level at the end of 2017 until it fixes shortcomings.

The lender said in a filing Friday that “reasonably possible” legal charges could be as high as $2.6 billion beyond reserves as of March 31. This is down from $2.7 billion in the previous quarter.

Wells Fargo executives are set to update analysts and shareholders on financial targets and regulatory matters at an investor day scheduled for May 10.

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

Copyright 2025 Bloomberg.
Print Email
Claims / LegalClaims & ReservingCommercial LinesLitigation/Liability TrendsMarketsNewsRiskThe C-SuiteU.S.Underwriting

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.

Chubb, The Hartford, Liberty and Travelers Team Up on Surety Tech Co. Launch
Hong Kong Fire Reveals Contractor Safety Breaches, Residents’ Revolt
AI in Property/Casualty Insurance: Why Trusted Data Is the Missing Link
The Latest Launches from Allstate, WTW, Whisker Labs

Related Articles

Wells Fargo Settles Phony Bank Account Scandal for $142M
Wells Fargo Could Get $1B Fine to Resolve Auto Insurance, Mortgage Lending Abuses
Wells Fargo Will Fork Over $2.09B to Resolve Longstanding U.S. Mortgage Probe
Judge Rejects Wells Fargo Bid to End Predatory Lending Lawsuit
Wells Fargo Reportedly Risks Record Fine From U.S. Consumer Watchdog for Various Abuses
Wells Fargo, Ex-CEO Fail to Squash Shareholder Lawsuit Over Fake Accounts
Wells Fargo Suit Alleges Bank Encouraged Use of Hidden Fees in Finance Programs

Our Contributors

Guy MoasThe Future of Knowledge in Insurance: From Training to AI-Powered Productivity
David PerlaLegal Finance and Insurance: From Confusion to Collaboration
Ashley Ballard6 Warning Signs for Insurers: How to Anticipate, Respond to Pipe Freezes
Mark PizziExecutive Utterances: On Presenting
Krista GlennRebuilding Negotiation Talent: Why This Skill Is Missing and How to Fix It
Ajay KelshikerDemystifying the Data Landscape: Lake, Warehouse and Lakehouse Explained
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Research & Whitepapers

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

Headlines

  • Why Reciprocal Insurance Exchanges Are Back in Fashion
  • What Progressive and GEICO Q3 Results Reveal About Auto ...
  • How One MGU Grew Fivefold When Capacity Fled Cat-Prone ...
  • The Cayman Islands Set Sail for Reinsurance Ops

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • 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
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map