Wells Fargo expands class action settlement over sham account scandal

Wells Fargo said on Friday that it is expanding the previously-announced settlement on the class action lawsuit over its sham account scandal to include customers going back an additional seven years.

The San Francisco-based lender said the widening of the pact will increase the settlement value by $32m to $142m. The original deal was initially unveiled in March.

Wells Fargo’s settlement now includes customers who were affected by sales issues going back to May 2002, from the earlier date of January 2009.

“The expansion of this agreement is another important step to make things right for our customers,” said Tim Sloan, chief executive.

The bank has been trying to dislodge itself from a scandal in which employees signed customers up for accounts without their knowledge, something that has tarnished the lender’s reputation.