- Wells Fargo Bank, N.A., (NYSE:WFC) and a group of institutional investors, including funds affiliated with BlackRock (BLK) and Pimco, reach a settlement that resolves two class action lawsuits related to Wells Fargo's role as trustee for certain residential mortgage-backed securities trusts created more than 10 years ago.
- Wells Fargo will pay $48M and denies claims in the litigation.
- Separate from the settlement amount the company is paying, up to $70M from certain trust reserve accounts established in connection with the litigation will be released.
- The settlement also resolves a related action seeking declaratory relief against Wells Fargo, as well as claims by Wells Fargo against certain investment advisers.
- Federal and state cases alleging similar claims filed by certain other institutional investors aren't part of the settlement.
- Previously: Wells Fargo gets regulatory warning from OCC: WSJ (Nov. 7)