A U.S. district judge in San Francisco granted final approval for Wells Fargo’s $100 million settlement. The agreement resolves a shareholder lawsuit alleging discriminatory hiring and lending practices.
Wells Fargo must establish a fund to provide mortgage assistance to borrowers in low- and moderate-income areas. The program will launch by the end of summer. It will remain in place for at least three years.
Shareholders filed the lawsuit in 2024, alleging executives and board members breached their fiduciary duties. Wells Fargo denied all liability and settled to avoid prolonged litigation costs. Directors' and officers' liability insurance will cover $10 million of the settlement.