Wells Fargo & Co.’s disclosure Thursday that employees may have opened significantly more unauthorized accounts than previously stated could jeopardize a $142 million class-action settlement with customers that won preliminary approval from a judge in July.
The scandal that helped hasten the lawsuit came to light almost a year ago, after regulators slapped Wells Fargo with fines of $185 million over its sales practices. Afterward, lawmakers called congressional hearings, and the bank named new leaders, clawed back executives’ pay and began an overhaul of its retail division. Wells Fargo’s stock lagged, and it lost its title as the world’s most valuable bank.
