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Wells Fargo will pay $62.5M to settle lawsuit

May 30, 2014

NEW YORK (AP) Wells Fargo will pay $62.5 million to settle a lawsuit brought by a Michigan retirement plan that said the bank invested its money in securities that lost value, according to court documents.

The City of Farmington Hills Employees Retirement System sued Wells Fargo in October 2010. It said Wells Fargo had assured it its securities investments were safe, but it invested the retirement system's plan in risky securities that lost value. Wells Fargo said in April that the companies had agreed to the terms of a settlement, and court documents say the parties reached a final agreement on Wednesday.

The lawsuit was later joined by the Arizona State Carpenters Pension Trust Fund and the Arizona State Carpenters Defined Contribution Trust Fund.

The settlement was filed with the U.S. District Court for the District of Minnesota.

Wells Fargo & Co. has not acknowledged any wrongdoing. Its shares rose 51 cents to $50.78 on Friday.

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Source: Associated Press

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