Wells Fargo faces proposed class action over bogus accounts
- Top 10 News for 9/19 - 9/23: Twitter on the Auction Block; Allergan Bolsters NASH Effort; Microsoft Returns Value
- Wall Street falls as energy lags; shares post gains on week
- Rumored Forever, Twitter (TWTR) May Have Finally Put the 'For Sale' Sign Up
- Facebook (FB) Shares Under Pressure on Reports Video Ad Metrics Were Artificially Inflated
- Brookfield Infrastructure (BIP)-Led Consortium to Take Controlling Stake in Petrobras' (PBR) NTS for $5.2B
A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. on February 10, 2015. REUTERS/Jim Young/File Photo
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
By Karen Freifeld
NEW YORK (Reuters) - Wells Fargo & Co, embroiled in a scandal over the opening of sham accounts, was sued on Friday by customers who accused the bank of fraud and recklessness for its behavior.
The lawsuit was filed in the U.S. District Court in Utah, and seeks class-action status on behalf of hundreds of thousands of customers nationwide.
Wells Fargo did not immediately respond to requests for comment.
Last week, the San Francisco-based lender agreed to pay $190 million to settle regulatory charges that employees opened some 2 million accounts without customers' knowledge, in order to meet sales targets.
Wells Fargo, the country's third-largest bank by assets, has said it has fired 5,300 people over the matter and would eliminate sales goals in its retail banking on Jan. 1, 2017.
Federal prosecutors have begun examining Wells Fargo's practices, and the bank's Chief Executive Officer John Stumpf is scheduled to testify before Congress next week.
In the complaint, three plaintiffs said customers were hurt by "abusive and fraudulent tactics" used by employees who felt they had to "do whatever it takes," including selling products they did not need or want, to meet sales quotas.
It was not immediately clear how the three named plaintiffs were specifically harmed by the bank's alleged wrongdoing.
The case is Mitchell et al v. Wells Fargo Bank NA et al, U.S. District Court, District of Utah, No. 16-00966.
(Reporting by Karen Freifeld; additional reporting by Jonathan Stempel in New York; Editing by Cynthia Osterman)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- e.l.f. Beauty (ELF) IPO Opens up 41%
- Coalition raids kill nine in central Yemen: medical sources, residents
- Suspect in fatal shooting of five at Washington state mall captured, identified
Create E-mail Alert Related CategoriesReuters
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!