Wells Fargo has reached a $110 million preliminary settlement to compensate all customers who claim the scandal-ridden bank opened fake accounts and other products in their name.
It’s the first class action settlement by Wells Fargo since authorities revealed in September that the bank opened up to 2 million fake accounts to meet unrealistic sales targets that have since been eliminated.
Wells Fargo said on Tuesday the payments to customers will be in addition to refunds the bank has already paid out.
The settlement is expected to cover several lawsuits: including one filed in May 2015 in the Northern District of California, a separate one launched last September by customers, as well as 10 others. Wells Fargo’s $110 million settlement marks a reversal from just a few months ago when it tried to kill a fake account lawsuit by forcing victims to resolve their claims quietly in closed-door arbitration instead of open court.
But Wells Fargo apparently decided not to enforce those controversial forced arbitration clauses and reach a settlement instead. The bank cited a desire to “move forward and avoid continued litigation.”