Wells Fargo must guarantee class-action settlement will fully repay customers, judge says

BY JAMES RUFUS KOREN, LA Times

Wells Fargo & Co. may have to cough up more than $142 million to settle a bevy of class-action lawsuits in connection with its unauthorized-accounts scandal.

A federal judge in San Francisco said late Wednesday that he would approve a settlement deal reached by the bank and plaintiffs’ attorneys, but only if they agree to several conditions — including a guarantee that all customers will be fully compensated for their losses.

That could further boost the amount the bank will have to pay to put the lawsuits behind it as questions remain about how many customers were harmed and how much money they lost.

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