Wells Fargo customers have opened a class action lawsuit against the bank over the opening of unauthorized accounts in their names.
In a statement, Wells Fargo said it makes "every attempt" to resolve complaints directly with customers before going to arbitration.
It's the first class-action lawsuit filed after Wells Fargo agreed to pay $185 million in penalties and $5 million in customer reimbursement after opening 2 million accounts without customers' authorization.
Wells Fargo & Co WFC.N faces a new USA lawsuit claiming that it funneled more than $3 billion of employee retirement savings into expensive, underperforming proprietary mutual funds to enrich itself.
A Wells Fargo spokesperson would not comment on the filing.
However, court records show the California case was reopened, and joined with a similar lawsuit filed there, following this year's Wells Fargo settlement. The company had been forced into a mandatory arbitration clause for a number of cases following the scandal.
"Wells Fargo's managers and bankers have for years engaged in unethical, and illegal practices called "gaming, '" the suit argued". Its previous CEO John Stumpf ventured down in the midst of the disturbance, it has been put under harder administrative investigation and its notoriety has been harmed as it faces numerous tests. The bank launched a national TV advertising campaign that aired during the World Series and featured the company's iconic stagecoach.
However, Wells Fargo recently signaled it would continue to try to enforce these arbitration clauses. But customer advocates say it improperly denies customers the legal protections of court proceedings, such as the right to appeal, and helps to hide corporate misconduct from the public and regulators because documents and hearings are not made public.
Zane Christensen, a lawyer representing customers in the class action, said that his firm is "saddened" by Wells Fargo's response and will "vigorously defend" against the bank's motion.
In a composed reaction to inquiries from USA administrators, distributed a week ago, the bank said it would remain by its discretion strategy, yet was putting forth free intervention administrations to influenced clients. Hillary Clinton said, "We can't let corporations like Wells Fargo use these fine print "gotchas" to escape accountability".