Wells Fargo makes US court request to throw out account scandal cases
Troubled US bank Wells Fargo has asked a US court to dismiss dozens of cases against it following the fake account scandal which dogged the California-based firm earlier this year.
Wells Fargo & Co.
$74.09
11:09 18/11/24
Wells admitted to creating thousands of unauthorised accounts and credit cards to meet aggressive sales targets, and agreed to pay $185m in fines to state regulators. The bank's CEO John Stumpf stepped down shortly after the incident, but he said the decision was not related.
The motion was filed in the US District Court in Utah on Wednesday, according to Reuters. The company had been forced into a mandatory arbitration clause for a number of cases following the scandal.
"We are saddened that despite Wells Fargo's commercials and promises to make things right, Wells Fargo is choosing to harm their customers once more," said Zane Christensen, the plaintiffs' lawyer in a statement.
Wells Fargo's reputation has been significantly harmed by the legal action in the aftermath of the scandal, but the bank has vowed to rebuild its customers' trust in it in a new advertising campaign.
It has faced scrutiny from a variety of lawmakers in the United States, most specifically from senator Elizabeth Warren, who led a senate committee hearing into Wells' actions earlier this year. The bank's profits have suffered in recent months as a result.