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 what they called deficient disclosures by the bank relating to its sales practices. The bank 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 latest cost for Wells Fargo comes from a 2016 consumer banking scandal in which employees opened as many as 3.5 million bogus accounts.
Business on 05/05/2018