Summary
Wells Fargo & Company (WFC) filed an 8-K on December 20, 2012, to announce a proposed settlement in two shareholder derivative lawsuits. The settlement, which received preliminary approval from the U.S. District Court for the Northern District of California on December 17, 2012, is significant for investors as it clarifies ongoing litigation. Crucially, the proposed settlement does not involve any monetary payment from the defendants to Wells Fargo or the plaintiffs. Instead, Wells Fargo will cover the attorneys' fees for the plaintiffs' counsel, as determined by the Court. This indicates a resolution to the shareholder derivative actions without direct financial recourse to the company from the defendants, though it does represent an expense for legal fees.
Key Highlights
- 1Wells Fargo is announcing a proposed settlement for two shareholder derivative lawsuits.
- 2The settlement received preliminary approval from the U.S. District Court on December 17, 2012.
- 3No funds will be paid by the defendants to Wells Fargo or the plaintiffs as part of the settlement.
- 4Wells Fargo will be responsible for paying attorneys' fees to the plaintiffs' counsel, subject to court approval.
- 5This filing serves as a formal notice of the proposed settlement and a hearing date for final approval.