It turns out those bondholder claims were worth more than chump change. On Friday, Wells Fargo stated in a quarterly filing with the Securities and Exchange Commission that it has agreed to settle this bondholder litigation for $590 million. Defendant KPMG will pay an additional $37 million, bringing the plaintiffs’ recovery to $627 million.
According to the bondholder plaintiffs team, this appears to be the biggest class action securities settlement to date arising from the mortgage crisis. Also, it’s the biggest settlement ever of claims brought under the ’33 Act, according to this press release by the plaintiffs legal team. (The proposed $8.5 billion Bank of America settlement is not a class action or a federal securities case.) The deal must be approved by Judge Sullivan. A copy of the settlement agreement has not yet been filed with the court.
