A federal judge in San Francisco has approved a $100 million settlement between Wells Fargo and its shareholders.
The legal resolution addresses allegations that the bank engaged in discriminatory hiring and lending practices.
U. S.
District Court Judge Trina Thompson issued the final approval on Friday, ending a lawsuit filed in 2024.
Shareholders accused certain Wells Fargo executives and board directors of failing in their fiduciary duty to prevent discriminatory practices.
Mortgage Assistance Program Details
The settlement requires Wells Fargo to create a $100 million fund for mortgage assistance.
Qualified borrowers in low- and moderate-income census tracts will benefit from the program.
The initiative covers more than 50 regions across the United States.
Borrowers in most areas will be eligible for both downpayment assistance and closing cost credits.
The bank must launch the program within three months of the approval order.
It must remain in place for at least three years.
Court and Stakeholder Reactions
Judge Thompson called the settlement "fair and reasonable" in her final order.
She noted that plaintiffs faced significant risks due to the possibility of protracted appeals.
The mortgage fund might not have been guaranteed after a trial, she added.
Thompson wrote that launching the fund represents a meaningful step toward expanding equitable access to financial services.
A Wells Fargo spokesperson said the bank is pleased to have reached a settlement.
Three law firms served as co-lead counsel for plaintiffs: Cotchett Pitre & McCarthy LLP, Motley Rice LLC, and Bleichmar Fonti & Auld LLP.
Tyler Redenbarger, a partner at Cotchett, Pitre & McCarthy, said the settlement provides real support to individuals who have historically faced financial discrimination.
The bank is required to launch the assistance fund by the end of summer.
