* To pay $110 mln to settle lawsuit over retail sales
* Settlement to resolve claims in 11 other pending class
March 28 Wells Fargo & Co said it agreed
to pay $110 million to settle a lawsuit by customers challenging
its opening of accounts without their permission, a practice
that led to a scandal that cost the bank's chief executive his
The bank said on Tuesday it expects the settlement to
resolve claims in 11 other pending class actions, and will cover
claims between Jan. 1, 2009, through the date the agreement is
The settlement agreement is yet to be approved by the court.
After attorneys' fees and costs of administration, claimants
will be reimbursed for any wrong fees, Wells Fargo said on
The remaining amount will be distributed to the claimants,
based on the number and kinds of unauthorized accounts or
services claimed, the bank said.
The lawsuit resolves claims that Wells Fargo's high-pressure
culture drove branch workers needing to meet sales quotas to
open unauthorized accounts, including with forged signatures.
Customers said this saddled them with accounts they did not
need or want, and fees they knew nothing about.
The lawsuit dates from May 2015, sixteen months before Wells
Fargo agreed to pay $185 million in penalties to settle
regulatory charges over the sham accounts, estimated to number
as many as 2 million.
That settlement with the U.S. Consumer Financial Protection
Bureau and Los Angeles City Attorney Mike Feuer prompted
national outrage, leading to the departure in October of the
bank's longtime chief executive, John Stumpf.
The named plaintiffs in the lawsuit are Shahriar Jabbari, a
Californian, and Kaylee Heffelfinger, from Arizona.
They believed they each had two accounts at Wells Fargo, but
said the bank opened a respective nine and seven accounts for
them, according to court papers.
Wells Fargo, which has abandoned sales quotas, had already
set aside enough money to cover the $110 million settlement.
Its new chief executive, Tim Sloan, in January told analysts
that the bank still has "a lot of work to do" to rebuild trust
with customers, employees and other stakeholders.
"This agreement is another step in our journey to make
things right with customers and rebuild trust," Sloan said in a
statement on Tuesday.
The case is Jabbari et al v. Wells Fargo & Co et al, U.S.
District Court, Northern District of California, No. 15-02159.
(Reporting by Jonathan Stempel in New York and Nikhil Subba and
Swetha Gopinath in Bengaluru; Editing by Shounak Dasgupta)