Wells Fargo discloses proposed derivative suit settlement with $100 million in mortgage aid
Wells Fargo filed a court-authorized notice of a proposed settlement of a shareholder derivative lawsuit over its home mortgage lending and diversity-related hiring practices. The settlement would require $100 million in mortgage assistance and a $10 million payment from an insurer to the company, and the defendants deny the allegations.
- The company must fund $100 million in mortgage assistance within 90 calendar days after the Effective Date, with programs lasting at least three years.
- An insurer will pay Wells Fargo $10 million on behalf of the director defendants within 30 calendar days of the Effective Date.
- Plaintiffs' counsel intends to seek a $27.5 million fee and expense award, separate from the $100 million and $10 million amounts.
- A final approval hearing is set for May 5, 2026, and objections are due by April 14, 2026.