April 14, 2014 – Wells Fargo & Co. settled a lawsuit over claims it mismanaged institutional investors’ collateral received as part of its securities lending program, lawyers for both sides told a judge as a trial was close to starting.
Three union retirement plans sued the lender in 2010. Jury selection was scheduled to start today in St. Paul, Minnesota, when the attorneys instead announced publicly before U.S. District Judge Donovan Frank that they’d reached an accord. The terms weren’t disclosed.
The trial would have been the third for San Francisco-based Wells Fargo over its program of temporarily lending an institutional investor’s holdings to a third party in exchange for collateral that the bank invests with the objective of producing a profit for its client.
The bank lost a $30.1 million jury verdict in 2010 then won a trial over an $8.2 million claim last year.
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