Saxena White is pleased to announce that on April 7, 2020, the Northern District of California approved a $320 million settlement on behalf of nominal Defendant Wells Fargo & Company with the Company’s officers, directors, and senior management. The Settlement includes a $240 million cash payment from Defendants’ insurers—representing the largest insurance-funded monetary component of any shareholder derivative settlement by over $100 million.
The action alleged that the twenty Defendants, each a current or former officer or director of Wells Fargo knew or consciously disregarded that the Company’s employees were illicitly creating millions of customer accounts without those customers’ knowledge or consent. Through this shareholder derivative action, Co-Lead Plaintiffs held Defendants accountable for a scandal that has significantly damaged one of America’s largest financial institutions.
Saxena White zealously advocated for the interests of the Company and obtained excellent results. Co-Lead Plaintiffs’ decision to settle this case was informed by a thorough investigation of the relevant claims; the filing of a detailed Complaint; success in defeating two motions to dismiss; active intervention in, stays of, and dismissals of multiple state court actions; consolidation and coordination with related federal actions; extensive review of over 3.5 million pages of documents from Defendants, Wells Fargo, and numerous third parties; consultation with experts; and research and preparation for depositions.
In approving the historic Settlement, the Court remarked that “this represents an excellent result for the shareholders” of Wells Fargo. The Court went on to praise “the risk” that Saxena White “took in litigation on a contingency basis – a risk they have borne for more than three years.”