Ongoing business litigation may cost Wells Fargo billions

On behalf of Koch & Schmidt posted in Business Litigation on Friday, November 11, 2016.

Those in Louisiana who regularly follow banking news may be aware of a recent scandal involving one of Wells Fargo’s chief executives, John Stumpf. Stumpf has since departed the company, and he also agreed to pay $185 million to regulators as a settlement in his case. The banking and financial services institution continues to face business litigation issues that may cost it as much as $2 billion or more when all is said and done.

Understandably, business clients often desire as swift and economically feasible solutions as possible when taking their cases to court. Chances of accomplishing such goals are often made easier by retaining assistance from highly skilled and experienced business and commercial law attorneys. As a business advocate, an attorney can help streamline the litigation process to avoid exorbitant fees.

As it is, a Wells Fargo representative recently stated the bank had set aside approximately $1.7 billion for litigation costs in this case. Apparently, it has already become clear that this amount was greatly underestimated. The actual cost could total more than $2 billion.

Protecting bottom line interests and paving the way toward a successful future after business litigation is one of many things a skilled business attorney can do for a client. Such situations are often legally complicated, and an experienced Louisiana attorney can provide clarification on all existing state and federal laws regarding a particular situation. Acting alongside this type of support allows a concerned party to make informed decisions and determine how best to proceed to obtain the most favorable outcome possible in court. 

Source: businessinsider.com, “Wells Fargo may pay $1.7 billion more in legal fees than it set aside“, Sruthi Shankar, Nov. 3, 2016