Richard Drew/AP ImagesNEW YORK (AP) — Wells Fargo has agreed to pay $110 million to settle a class-action lawsuit over up to 2 million accounts its employees opened for customers without getting their permission, the bank announced Tuesday.
Wells Fargo recently reached a $110 million deal that it hoped would close the books on a variety of class action lawsuits related to millions of fake accounts opened by Wells employees trying to game the bank’s system of sales quotas and incentives.
Good news for Wells Fargo customers caught up in the fake account scandal: The bank has agreed to increase the size of its class action settlement to $142 million and include accounts opened as early as 2002.
When it was revealed in September that Wells Fargo employees were opening fake checking and credit card accounts for customers, it soon became clear that the bank's incentive structure for branch workers was to blame.
REUTERS/ Shannon StapletonWells Fargo has fired thousands of employees and incurred fines totaling $185 million because of a widespread practice of employees opening new accounts for existing customers without their authorization.
An Ontario judge has approved a $12.5-million settlement that would end an overtime employment class action filed against BMO Nesbitt Burns Inc.
Edward Belobaba of the Ontario Superior Court of Justice on Monday issued an 8-page written decision that approves the creation of a $12-million fund that would be distributed to up to 1,800 investment advisors who worked at Nesbitt between January 2002 and June 2016.