Wells Fargo $85 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Wells Fargo & Co. common stock between Feb. 24, 2021, and June 9, 2022, may be eligible to claim a cash payment from a class action settlement.

Wells Fargo & Co. agreed to pay $85 million to settle a class action lawsuit alleging it and related defendants made false and misleading statements and omissions regarding the company’s diversity hiring initiative known as the diverse search requirement.

Who is eligible to file a claim?

Class members must meet the following criteria:

• They purchased or otherwise acquired Wells Fargo & Co. common stock between Feb. 24, 2021, and June 9, 2022, inclusive.
• They were damaged as a result of their purchase or acquisition during this period.

Additional details

• Both individuals and entities can be class members.
• Authorized representatives may submit claims on behalf of beneficial owners subject to the claim form requirements.

How much is the Wells Fargo payout?

The total settlement fund is $85,000,000. The amount each class member receives depends on several factors:

• The number of valid claims filed
• The number of shares purchased or acquired during the class period
• The timing of purchases and sales
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average distribution per allegedly damaged share is approximately $0.056 before deductions for taxes, notice and administration costs, and attorneys' fees and expenses.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member’s payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts include:
• For shares sold before 2:02 p.m. Eastern time on June 9, 2022:
• $0 per share

• For shares sold between 2:02 p.m. and market close on June 9, 2022, the lesser of:
• $0.76 per share
• The purchase/acquisition price minus $42.67
• The purchase/acquisition price minus the actual sale price

• For shares sold between June 10, 2022, and Sept. 6, 2022, the lesser of:
• $1.52 per share
• The purchase/acquisition price minus the average closing price from June 9, 2022, through the date of sale
• The purchase/acquisition price minus the actual sale price

• For shares held as of the close of trading on Sept. 6, 2022:
• The lesser of $1.52 per share or the purchase/acquisition price minus $42.14

• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a settlement payment

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is April 14, 2026.

Settlement administrator's mailing address: SEB Investment Mgm’t AB v. Wells Fargo & Co., c/o A.B. Data Ltd., P.O. Box 173025, Milwaukee, WI 53217

Class members who previously excluded themselves but now wish to participate must submit a written request to opt back in by April 14, 2026, to P.O. Box 173001.

The claims administrator will acknowledge receipt of claim forms within 60 days of submission. Those who do not receive an acknowledgement postcard should call the administrator at 866-905-8128. 

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security or taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase, sale or acquisition price

Claimants must provide documentation to support their transactions in Wells Fargo common stock. Acceptable forms of proof include:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional information found in a confirmation slip
• Other documentation the claims administrator deems adequate

Payout options

The settlement administrator will mail physical checks to eligible claimants.

$85 million settlement fund

The $85,000,000 settlement fund includes:

• Notice and administration costs: Up to $1,200,000
• Attorneys' fees: Up to $21,250,000
• Attorneys' expenses: Up to $3,500,000
• Service awards to class representatives: Up to $40,000 total
• Payments to eligible class members: Remainder of the fund

Important dates

• Deadline to opt back in: April 14, 2026
• Deadline to file a claim: April 14, 2026
• Fairness hearing: May 5, 2026

When is the Wells Fargo securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after it resolves any appeals and the court grants final approval of the settlement.

Why is there a class action settlement?

This class action lawsuit alleged Wells Fargo & Co. and certain executives made false or misleading statements and omissions about the company’s diversity hiring initiative, which allegedly violated federal securities laws. The plaintiffs claimed these misrepresentations caused investors to purchase or acquire Wells Fargo common stock at artificially inflated prices and suffer losses when the truth was revealed.

The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the costs, risks and delays of further litigation.

Sources

1. Class notice
2. Claim form