On Monday, August 18, Wells Fargo has agreed to enter into a settlement of $62.5 million with large institutional clients who lost money due to the bank allegedly misleading investors by claiming their program was safe, a report by the Star Tribune Business stated.
The approved settlement was a result of a class action lawsuit with 92 members, including a carpenter’s union in Arizona and an employee retirement fund for a city in Michigan. The plaintiffs stated they were lead to believe that they were participating in a low-risk venture, when, in reality, the bank was using their funds for much riskier investments.
The settlement was the third among the five lawsuits Wells Fargo has been involved in. The first was resolved in 2012 by a settlement of $57 million. Last year, however, Wells Fargo was favored in a similar lawsuit that went to trial in San Francisco.
Arenson Law Group, PC, has been in the practice of helping Cedar Rapids businessmen in reaching favorable arrangements during the complicated process of business litigation. To know more about what we can do for your business, call our offices at (319) 363-8199 today.