Wells Fargo Lawsuit Not Barred by Earlier Deal, U.S. Says
This article is for subscribers only.
Wells Fargo & Co. can be sued in a federal lawsuit in New York over mortgage foreclosure practices without violating the terms of a settlement reached with the bank in another case, the Justice Department said.
The department, in a filing yesterday in federal court in Washington, said the bank’s allegation that the U.S. breached the terms of the $5 billion deal by suing in federal court in New York for hundreds of millions of dollars based on conduct that Wells Fargo is no longer liable for is “flatly inconsistent” with the terms of the settlement.