Wells Fargo agrees to settle class action over account scandal for $110m

Wells Fargo has reached an agreement in principle to settle a class action lawsuit over its sham account scandal for $110m, the US lender said on Tuesday.

The San Francisco-based bank said that the settlement would include all individuals who claim that “Wells Fargo opened an account in their name without consent, enrolled them in a product or service without consent, or submitted an application for a product or service in their name without consent” from January 2009.

Wells added that it “expects this settlement to resolve claims in 11 other pending class actions that unauthorized accounts were opened in customers’ names or that customers were enrolled in products or services without their consent”.

“This agreement is another step in our journey to make things right with customers and rebuild trust,” said Tim Sloan, chief executive.

The bank said that it had already accrued for the full costs of the settlement as of the end of last year. The pact must still be approved by the court.