Investors who purchased or otherwise acquired Wells Fargo & Co. common stock between February 24, 2021, and June 9, 2022, may be eligible for a cash payment from an $85 million class action settlement.
Overview
Wells Fargo & Co. agreed to pay $85 million to resolve allegations that it made false or misleading statements and omissions related to its diversity hiring initiative, known as the diverse search requirement.
Who Is Eligible?
To qualify as a class member, individuals or entities must have:
- Purchased or acquired Wells Fargo common stock between February 24, 2021, and June 9, 2022, inclusive.
- Incurred damages as a result of the purchase or acquisition during this period.
Authorized representatives may file on behalf of beneficial owners, subject to the claim form requirements.
Settlement Payment Details
The exact payout each class member receives depends on:
- The number of valid claims filed
- The number of shares purchased or acquired
- The timing of purchases and sales
- Total recognized losses across all claimants
Payments will be distributed on a pro rata basis using a court-approved plan of allocation.
Estimated Payouts
- The estimated average distribution is about $0.056 per allegedly damaged share before deductions for taxes, administrative costs, and attorneys’ fees.
- Actual payments may vary depending on individual trading histories and the total number of claims.
- Recognized loss amounts differ based on when shares were sold or whether they were held as of September 6, 2022.
Recognized loss calculations include:
- Shares sold before 2:02 p.m. ET on June 9, 2022: $0 per share
- Shares sold between 2:02 p.m. and market close on June 9, 2022: the lesser of
- $0.76 per share
- Purchase/acquisition price minus $42.67
- Purchase/acquisition price minus actual sale price
- Shares sold between June 10 and September 6, 2022: the lesser of
- $1.52 per share
- Purchase/acquisition price minus the average closing price from June 9 through the sale date
- Purchase/acquisition price minus actual sale price
- Shares held on September 6, 2022: the lesser of
- $1.52 per share
- Purchase/acquisition price minus $42.14
Payments under $10 will not be issued.
How to File a Claim
Claims may be filed online or by mailing a completed paper form. The deadline to file is April 14, 2026.
Mailing address:
SEB Investment Mgmt. 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 wish to participate must submit a written request to opt back in by April 14, 2026, to P.O. Box 173001.
The administrator will acknowledge receipt of claims within 60 days. Anyone who does not receive acknowledgement should call 866-905-8128.
Required Documentation
Claimants must provide:
- The last four digits of their Social Security or taxpayer identification number
- Details on each relevant transaction, including trade dates, share quantities, and total prices
Documentation must support all transactions. Acceptable forms include:
- Broker confirmation slips
- Account statements
- Authorized broker statements containing all relevant transaction information
- Other documentation deemed adequate by the claims administrator
Payment Method
Eligible claimants will receive payment via mailed check.
How the $85 Million Settlement Fund Will Be Used
The settlement fund will cover:
- 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: up to $40,000 total
- Payments to eligible class members: remaining funds
Important Dates
- Deadline to opt back in: April 14, 2026
- Deadline to file a claim: April 14, 2026
- Fairness hearing: May 5, 2026
When Will Payments Be Distributed?
Payments will be issued after the court grants final approval and any appeals have been resolved.
Why the Settlement Was Filed
The lawsuit alleged that Wells Fargo and certain executives made false or misleading statements about the company’s diversity hiring initiative, violating federal securities laws. Plaintiffs claimed these misrepresentations caused investors to buy stock at inflated prices and suffer losses when corrective information became public.
Wells Fargo denies all wrongdoing but agreed to settle to avoid the risks and costs of continued litigation.
Settlement Details
- Estimated award: approximately $0.056 per share
- Claim deadline: April 14, 2026
