Wells Fargo may have underestimated business litigation costs

Regardless of whether a California business is a small, family-run operation or a huge corporation known worldwide, situations often develop that cause tremendous legal problems for those involved. Some time ago, news of a huge scandal concerning an American international and financial services holding establishment, Wells Fargo & Co., spread throughout the media. Although one settlement was reached regarding the situation, other business litigation remains ongoing.

The scandal  involved Wells Fargo chief executive, John Stumpf, who has since left his position at the company. Included in the case were allegations concerning at least 2 million unauthorized new accounts. Reportedly, Stumpf agreed to settle by paying regulators approximately $185 million.

As the situation unfolded, Well Fargo estimated its litigation costs may reach as high as $1 billion. Recently, the bank revealed its underestimation of those costs. As it continues to undergo intense scrutiny of its sales practices and the scandal involving its former executive, it has become clear that fees may greatly exceed the amount it had originally set aside for such purposes.

The company also said it has no way of knowing yet the scope of the negative financial impact the business litigation situation may have on its future. Anyone facing similar challenges in California may seek support by contacting business and commercial law attorneys for guidance. Swift and economically feasible outcomes often hinge upon skilled and experienced representation in court. As an advocate, an attorney will work to ensure that a client's bottom line is protected and a fair and agreeable solution is obtained.

Source: businessinsider.com, "Wells Fargo may pay $1.7 billion more in legal fees than it set aside", Sruthi Shankar, Nov. 3, 2016

No Comments

Leave a comment
Comment Information

Attorneys Schedule a
to experience
Contact Us Now »

Irvine Office
2020 Main Street, Suite 600
Irvine, CA 92614

Toll Free: 866-454-2281
Fax: 949-975-7501
Irvine Law Office Map

Westlake Village Office
340 North Westlake Blvd, Suite 110
Westlake Village, CA 91362

Toll Free: 866-454-2281
Phone: 805-373-1500
Fax: 805-373-1503
Westlake Village Law Office Map

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.