Wells Fargo Agrees To $110 Million Settlement Of Class-action Suit

By Wallace Witkowski Markets MarketWatch Pulse

Wells Fargo & Co. said late Tuesday it agreed to settle a class-action lawsuit over the creation of millions of unauthorized customer accounts. The bank said it will set aside $110 million to settle a class-action suit filed in California in May 2015. "After attorneys' fees and costs of administration, class members will be paid first for out-of-pocket losses, such as fees incurred due to unauthorized account openings," Wells Fargo said in a statement. "Amounts remaining after out-of-pocket losses will be split among all claimants, based on the number and kinds of unauthorized accounts or services claimed." In September, the bank agreed to a $185 million settlement with the $185 million settlement with the Consumer Financial Protection Bureau after employees created more than 2 million unauthorized checking and credit-card accounts for customers. Wells Fargo shares rose 0.3% to $56.10 after hours.

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