Wells Fargo Sued by Los Angeles Over ‘Fraudulent Conduct’

Wells Fargo Bank could be writing a big check after the city of Los Angeles filed a lawsuit over unfair practices in which employees opened unauthorized accounts for customers, sticking them with fees and damaging their credit.

The Los Angeles Times reported that the suit was filed Monday under an unfair-business-practices law that permits attorneys representing large California cities to seek redress for customers throughout the state.

City Attorney Mike Feuer says the California-based bank encouraged its employees to engage “fraudulent conduct” through a culture of high-pressure sales.

In a statement, the bank said it would vigorously defend itself against the allegations.

The lawsuit seeks penalties of up to $2,500 for every violation and restitution for customers who were harmed.

Topics Lawsuits Fraud