Judge Approves $142 Million Wells Fargo Unauthorized Accounts Settlement; Customers Have Until July 7 to File a Claim
On Thursday, June 14, 2018, a federal judge formally approved a $142 million settlement to compensate customers injured by the Wells Fargo (NYSE:WFC) “unauthorized account” scandal. The settlement, negotiated by Seattle-based law firm Keller Rohrback L.L.P., includes a first-of-its-kind mechanism to repay Wells Fargo victims for increased borrowing costs incurred because of a change to their credit score, together with credit repair services to reverse the harm itself. Wells Fargo customers who believe an unauthorized account was opened in their name still have time to file a claim.
The order was issued by the Hon. Vince Chhabria, the judge presiding over the class action. Judge Chhabria’s order stated that the settlement “represents a successful outcome” for the class, which the settlement will provide with “significant monetary benefits.”
“We are pleased that the Court has granted final approval of the settlement so that the victims of Wells Fargo’s unauthorized account debacle can receive the innovative and substantial relief provided by this class action settlement," said Derek Loeser, a partner at Keller Rohrback L.L.P. and lead counsel for the nationwide class.
Under the settlement, class members with valid claims are entitled three kinds of compensation:
- First, unreimbursed fees charged in connection with unauthorized accounts.
- Second, compensation for increased borrowing costs suffered as a result of unauthorized accounts.
- Third, a per-account distribution of the money remaining in the settlement fund after fees and compensation for increased borrowing costs are paid out.
Full details of the settlement, including a description of the first-of-its-kind credit damages model, are at www.wfsettlement.com the official settlement website.
For any Wells Fargo customers who think they may have had an unauthorized account opened in their name, there is still plenty of time to file a claim. The deadline to file claims is July 7, 2018. Information on how to file a claim is at www.wfsettlement.com.
As of the beginning of this month, nearly half a million claim forms had been filed, with many forms identifying multiple unauthorized accounts. “The reaction of class members to this settlement has been overwhelmingly positive,” Loeser said.
About Keller Rohrback
Keller Rohrback L.L.P. is a consumer-rights class action law firm with offices in six locations. Our Complex Litigation Group is proud to offer its expertise to clients nationwide, and our trial lawyers have obtained judgments and settlements on behalf of clients in excess of $23.25 billion. The firm’s record of success includes settlements with numerous Fortune 500 companies accused of cheating their employees and customers. Recently, managing partner Lynn Sarko was appointed to the Plaintiffs’ Steering Committee in the landmark Volkswagen “Clean Diesel” litigation. More about the law firm and its successes can be found at www.krcomplexlit.com, or connect with us on Facebook, Twitter or LinkedIn.