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Insurers of Wells Fargo CEO Tim Sloan, Blacksmith General Manager John Stumpf, and 18 others will provide shareholders with more than $ 240 million following the scandal over the creation of millions of fictitious accounts.
Subject to court approval, the settlement of the case resolves the prosecution of current and former directors and officers for breach of fiduciary duty because of "their alleged failure to detect and prevent practical problems. "said Wells Fargo in a document tabled on Wednesday. The officials denied that they had done something wrong.
Shareholders' lawyers who filed a lawsuit on behalf of the bank described the deal as "the largest cash settlement funded by an insurer in a derivative lawsuit," according to Reuters . The deal is higher than the $ 139 million paid by News Corp. in 2013 for its handling of the scandal of telephone piracy in Britain, said the press service.
The bank of San Francisco has been prey through investigations into its sales practices since Wells in September 2016 agreed to pay nearly $ 200 million to settle the government's charges, it allegedly defrauded millions of consumers by creating accounts on their behalf without their knowledge.
The outcry over the bank's handling of the scandal paved the way for Stumpf's exit. Wells was then faced with a bad press as another consumer abuse has emerged dealing with its mortgages and auto insurance companies.
A spokesman for Wells Fargo said the bank would have no other comment to make, other than its deposit, which could cost it $ 2.7 billion more than expected as of December 31 for solve legal problems.
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