Financial services company Wells Fargo has reached a settlement in a class action lawsuit, agreeing to pay $1 billion to shareholders. The suit alleged that the bank misled its shareholders about its efforts to resolve the 2016 fraudulent accounts scandal.
All cash amounts of $1 billion have been settled Granted Initial approval from US District Judge Gregory Woods in federal court in Manhattan. Another hearing will be held on September 8 to obtain final approval.
in the bank statement He said They disagreed with the allegations made in the suit. On the other hand, while they do not agree with the accusations, they are “happy to resolve this matter.”
Last December, Wells Fargo also entered into a $3.7 billion agreement with the Consumer Financial Protection Bureau to resolve allegations that the bank’s actions harmed more than 16 million individuals with deposit accounts, auto loans, and mortgages.
At the time, Ripple CEO Brad Garlinghouse compared the Wells Fargo case to the collapse of FTX. According to Garlinghouse, the world was outraged by FTX, which he thought was “appropriate”. However, the CEO expressed concern about the lack of interest in the Wells Fargo case saying they had “mismanaged billions in customer money”.
Related: CEO Brad Garlinghouse says defending against the SEC costs Ripple $200 million
Similar concerns were recently voiced by community members on a recent Reddit forum. On May 17, a Redditor He said That the US Securities and Exchange Commission should also look into banks. They wrote:
“People put their hard-earned money in a bank thinking it’s 100% safe, and borrow to buy a house and cars only to be scammed out of it.”
The community member also argued that banks broke the regulations several times each year, but that “the SEC has been fairly silent” about it. Another Redditor echoed the sentiment He said That “it’s clear that banks get a permit most of the time.”
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