• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Millennials say they’ll refuse to care for aging boomer parents—but they’ll be forced to as their inheritance shrinks to 40 cents on the dollar

2

The rise of 'conspicuous waiting': The 19th-century economic theory that explains why Gen Z posts their place in line

3

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers

1

Millennials say they’ll refuse to care for aging boomer parents—but they’ll be forced to as their inheritance shrinks to 40 cents on the dollar

2

The rise of 'conspicuous waiting': The 19th-century economic theory that explains why Gen Z posts their place in line

3

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
Leadership

Wells Fargo Was Just Hit With a Shareholder Class Action Lawsuit

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
September 27, 2016, 6:07 AM ET
US-BANKING-CONGRESS-WELLS FARGO
Photograph by Saul Loeb — AFP/Getty Images
Add Fortune on Google for similar content.

A shareholder class action lawsuit was filed against Wells Fargo & Co on Monday that alleged the firm misled investors about its financial performance and the success of its sales practices.

Wells Fargo (WFC), the United States’ third-largest bank by assets, agreed to pay $190 million earlier this month to settle regulatory charges that some of its employees opened as many as 2 million accounts without customers’ knowledge, in order to meet sales targets.

Robbins Geller Rudman & Dowd LLP announced the lawsuit and is seeking class action status on behalf of buyers of the company’s shares between Feb. 26, 2014 and Sept. 15, 2016.

The lawsuit, which was filed in the U.S. District Court of Northern California, comes nearly a week after Wells Fargo chief executive John Stumpf faced U.S. Senate lawmakers about his oversight at the bank.

It also singled out Stumpf and Carrie Tolstedt, the now-retired executive at the center of the scandal, for selling more than $31 million of their stock in Wells Fargo at “artificially inflated” prices.

Wells Fargo has said its board will assess whether to cancel or claw back any incentive compensation paid to Tolstedt.

The complaint also criticizes the firm’s cross-selling strategy, saying it failed to disclose material facts about its practices that were aimed at fulfilling sales quotas.

See also: The Labor Department Is Launching a Review of All Wells Fargo Complaints

Wells Fargo has long been the envy of the banking industry for its ability to sell multiple products to the same customer.

The San Francisco-based bank has said it has fired 5,300 people over the matter and would eliminate sales goals in its retail banking on Jan. 1, 2017.

Wells Fargo declined to comment on the matter.

Up to Monday’s close, shares of the company have fallen more than 10% since Sept. 8 when it reached a settlement with regulators, wiping off more than $25 billion of market capitalization.

Editor’s note: The headline of an earlier version of this story incorrectly referred to Wells Fargo as “Walls Fargo”. Fortune regrets the error.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Leadership

A loneliness epidemic is creating a new type of third space: the one built around curiosity
SuccessSocial Media
A loneliness epidemic is creating a new type of third space: the one built around curiosity
By Tatiana SatauaAugust 1, 2026
5 hours ago
Jensen Huang
SuccessCareers
Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
By Preston ForeAugust 1, 2026
5 hours ago
Inside Miami’s ‘Billionaire Bunker,’ a man-made island for the .01% where billionaires like Jeff Bezos and Mark Zuckerberg shell out for total privacy
Real EstateBillionaires
Inside Miami’s ‘Billionaire Bunker,’ a man-made island for the .01% where billionaires like Jeff Bezos and Mark Zuckerberg shell out for total privacy
By Marco Quiroz-GutierrezAugust 1, 2026
5 hours ago
Despite China’s 996 culture, DeepSeek founder Liang Wenfeng says his workers don’t do overtime or even have KPIs: ‘No one manages them’
Successwork-life balance
Despite China’s 996 culture, DeepSeek founder Liang Wenfeng says his workers don’t do overtime or even have KPIs: ‘No one manages them’
By Orianna Rosa RoyleAugust 1, 2026
9 hours ago
Golfer in white hat
Big TechAmazon
Amazon’s Andy Jassy sees a $1 trillion cloud built on businesses like the PGA Tour—which swapped its server trucks for AI broadcasts 
By Amanda GerutAugust 1, 2026
10 hours ago
Photo of two Harvard football teammates at the Harvard v. Yale game
SuccessSports
Wall Street’s hidden recruiting pipeline isn’t an Ivy League diploma—it’s the teammate who triples your odds of getting hired
By Mia OsmonbekovAugust 1, 2026
11 hours ago

Most Popular

Millennials say they’ll refuse to care for aging boomer parents—but they’ll be forced to as their inheritance shrinks to 40 cents on the dollar
Personal Finance
Millennials say they’ll refuse to care for aging boomer parents—but they’ll be forced to as their inheritance shrinks to 40 cents on the dollar
By Nick LichtenbergJuly 31, 2026
1 day ago
The rise of 'conspicuous waiting': The 19th-century economic theory that explains why Gen Z posts their place in line
Retail
The rise of 'conspicuous waiting': The 19th-century economic theory that explains why Gen Z posts their place in line
By Tatiana SatauaJuly 31, 2026
1 day ago
Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
Success
Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
By Preston ForeAugust 1, 2026
5 hours ago
'Retiring backwards': How cold economic reality forced Gen X into something like the reverse of baby boomers' golden years
Success
'Retiring backwards': How cold economic reality forced Gen X into something like the reverse of baby boomers' golden years
By Nick LichtenbergJuly 31, 2026
1 day ago
Jensen Huang says this is the greatest time in history to start a business—and his advice is to stop overthinking it: 'How hard can it be?’
Success
Jensen Huang says this is the greatest time in history to start a business—and his advice is to stop overthinking it: 'How hard can it be?’
By Preston ForeJuly 31, 2026
1 day ago
Tim Cook signed off on his final Apple earnings call with a warning about a ‘100-year flood’ in memory chip pricing
Big Tech
Tim Cook signed off on his final Apple earnings call with a warning about a ‘100-year flood’ in memory chip pricing
By Alexei OreskovicJuly 30, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.