Skip to content
Subscriber Only

Wells Board, Tolstedt Sued by Investor Over Accounts Scandal

  • Suit seeks compensation clawback over unauthorized accounts
  • Shareholder alleges CEO Stumpf, board breached fiduciary duty
Video player cover image

Lawmakers Demand Accountability From Stumpf

Updated on

Wells Fargo & Co.’s board was accused of breaching its duty to investors in a lawsuit that also names Carrie Tolstedt, the executive whose community banking unit created unauthorized customer accounts to reap extra fees.

The suit adds to the mounting pressure on Wells Fargo and Chief Executive Officer John Stumpf since the bank agreed Sept. 8 to pay $185 million in fines and penalties to resolve regulators’ allegations it created more than 2 million deposit and credit-card accounts without customers’ authorization. Analysts and congressional leaders have called for the bank to claw back Tolstedt’s compensation and for Stumpf to resign.