Wells Fargo Reaches $480 Million Settlement in Class Action Suit

Wells Fargo & Co. agreed to pay $480 million to settle a class-action lawsuit in which investors accused the bank of securities fraud related to its fake-account scandal.

The bank had previously set aside reserves for the settlement, according to a regulatory filing May 4. Wells Fargo said in a statement that it denies the allegations in the suit.

It’s the latest cost for Wells Fargo from a consumer banking scandal that arose in September 2016. That issue, in which employees opened as many as 3.5 million bogus accounts, ultimately cost then-Chief Executive Officer John Stumpf his job.

Last month, ...