The past year has been a rough one for San Francisco-based Wells Fargo. The bank has gone from being the largest bank in America to number three in a matter of months, and hard times are not letting up. New scandals continue to shake loose from the bank’s branches, and now a court ruling may open the bank up to even more liability.
Wells Fargo Fake Account Lawsuits Aren’t the Only Ones Piling Up
In the wake of the ghost accounts scandal, when Wells Fargo employees opened over two million fraudulent accounts, more inappropriate activities have been exposed. Customers of the bank may have been charged for insurance they didn’t request, charged mortgage fees that were unnecessary, and charged for inappropriate financial products. The latest of these scandals accuses the bank of closing and freezing real bank accounts, forcing many of its customers into financial crisis. It’s little wonder that the bank is waist deep in lawsuits.
Thousands of cases all over the country have been filed against the banking giant. Many of these suits demand that consumers be paid back for the damage done to their credit and for the property they lost due to the financial stresses caused by the bank’s alleged errors. However, the bank finds itself somewhat protected by waivers and forced arbitration clauses signed by these customers. Now, some of these legal protections may be faltering.
A federal judge here in San Francisco has ruled that shareholders can hold former and current Wells Fargo officers and directors personally liable for the companies “sales abuses.” This means former CEO John Stumpf, retail banking chief Carrie Tolstedt, current CEO Tim Sloan and many other executives may be on the hook for damages. Could this also be a sign that more civil lawsuits may be allowed as the banking giant continues to compensate all the consumers hurt by its alleged misdeeds?
Brandi Law Firm lawyers recognize the hurt that can be caused when a person’s financial wellbeing has been damaged. An experienced attorney can help families who have fallen victim to banking misdeeds, so don’t be afraid to call for help when you need it most.