The Business Litigation Blog

Wells Fargo Will Have to Face Shareholder Dispute Lawsuit

Wells Fargo’s business practice of “Hit the Streets Thursday” used Latino employees to target undocumented immigrants into opening bank accounts. The tactics also had employees urging potential clients to open accounts with free money or by waiving check-cashing fees. Signing up for an account was seen as a sale in Wells Fargo’s eyes. More accounts meant better numbers. The banks did this to meet daily and monthly quotas of signing up new members.

This new information came to light after shareholders and the board of directors sued when accounts were opened without the authorization of clients. Wells Fargo was hit with $185 million dollars in regulatory fees before the shareholders filed a complaint. From executives to branch employees, everyone but the board and stakeholders were aware of the unsavory business practices of the bank.

Wells Fargo sought to dismiss the shareholder’s lawsuit about the fraudulent account, but lost. The company will continue this battle: “these allegations are inconsistent with our polices, values, and the relationships we work hard to build with all parts of our community.”

If you have a shareholder dispute contact Thomas E. Patterson or Patterson Law Firm tpatterson@pattersonlawfirm.com or (312)-223-1699. 

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