Wells Fargo to pay $110M settlement over unauthorized accounts

Wells Fargo announced Tuesday it would pay $110 million to settle a class-action lawsuit over more than 2 million accounts employees opened for customers without their permission.

The Associated Press noted that it was the first private settlement reached by Wells Fargo after it paid more than $180 million to federal and state officials in California.

The settlement affects Wells Fargo customers who’ve had an account opened for them without permission since January 1, 2009, according to the company’s announcement.

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Former Wells Fargo employees said they were pressured — sometimes to the point of mental breakdowns — to meet sales goals set by corporate executives.

John Stumpf resigned as Wells Fargo’s CEO last year, and the bank has since ended sales goals for opening accounts.

The settlement is subject to court approval. Wells Fargo said it believes the settlement will resolve nearly a dozen other pending class-action lawsuits over the accounts.

“This agreement is another step in our journey to make things right with customers and rebuild trust,” Wells Fargo CEO Tim Sloan said in a statement.