Wells Fargo agreed to pay $1 billion to settle a class-action lawsuit filed by shareholders who claimed the bank overstated its progress in complying with regulatory orders related to its 2016 fake accounts scandal.

The bank entered the settlement Tuesday in U.S. District Court for the Southern District of New York with plaintiffs that included the Employees’ Retirement System of Rhode Island (ERSRI), the Public Employees’ Retirement System of Mississippi, the Louisiana Sheriffs’ Pension & Relief Fund, and Swedish bank Handelsbanken Fonder AB. The settlement was preliminarily approved by Judge Gregory Woods.

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...