Wells Fargo will pay $300 million to settle a class-action lawsuit from shareholders who argued the bank knew it was charging customers for unnecessary auto-collision protection insurance but not telling investors, the law firm Robbins Geller Rudman & Dowd said Tuesday in a statement.
A trial in the case was set to start Feb. 27. The settlement is pending approval by a judge in the U.S. District Court for the Northern District of California.
“While we disagree with the allegations in this case, we are pleased to have resolved this legacy issue,” a Wells Fargo spokesperson told Bloomberg and Reuters in a statement Tuesday.
