Motley Rice LLC, as co-lead counsel, announces a $110 million preliminary settlement agreement to resolve a shareholder derivative action brought on behalf of Wells Fargo alleging that its Board of Directors breached their fiduciary duties with regard to Wells Fargo’s alleged discriminatory hiring and lending practices. Under the settlement agreement, Wells Fargo agrees to create a $100 million Borrower Assistance Fund, which will provide “mortgage assistance to benefit low-income and moderate-income borrowers and borrowers in low- and moderate-income census tracts.” The settlement also requires $10 million to be paid by the insurer of the Board of Director Defendants to Wells Fargo.
The Court will hold a settlement hearing on May 5, 2026, at 2:00 p.m. PST, to determine whether the settlement should be granted final approval.
"We are pleased the Court granted preliminary approval of the settlement," said Motley Rice attorney Marlon Kimpson.
The case is In re Wells Fargo & Company Hiring Practices Derivative Litigation, No. 3:22-cv-05173-TLT, in the United States District Court for the Northern District of California.
Download court documents
Read the full settlement notice.
Read the summary settlement notice.
Read the settlement agreement.
Read the preliminary approval order.
Read the full complaint.