One week after Wells Fargo’s chief executive faced a federal hearing over the bank’s numerous transgressions, the company now faces a multitude of lawsuits filed by customers, shareholders, and former employees.
In just the last few weeks, the bank has been slapped with at least four lawsuits seeking class-action status, including one filed Monday “on behalf of employees who may have been fired or demoted over the last 10 years for refusing to open bogus accounts to meet aggressive sales goals,” the Los Angeles Times reported.
Also filed on Monday was a class-action suit on behalf of Wells Fargo shareholders, who claim the bank misled investors and misrepresented the “cross-selling” technique, which fueled much of the fraudulent activity.
The national scrutiny and litany of legal action comes after Wells Fargo settled a lawsuit this month over bank employees opening more than 2 million fake bank accounts in order to meet sales goals. Wells Fargo settled with the L.A. City Attorney’s Office and two federal regulatory agencies for a total of $185 million in fines, but faces ongoing criticism as details about the fraud emerge.
Wells Fargo’s board is also considering whether to claw back pay from Chief Executive John Stumpf, as well as Carrie Tolstedt, former head of retail banking, the Wall Street Journal reported.