Wells to Pay Citi $100M to Settle Wachovia Lawsuit

Wells Fargowill payCitigroup$100 million to settle a legal dispute over the contentious 2008 purchase of Wachovia, the companies said on Friday.

Wells Fargo
Wells Fargo

The agreement, which the companies said would settle all claims related to the dispute, resolves a long-running feud stemming from the financial crisis.

Citigroup agreed in September 2008 to buy most of Wachovia, before being outbid by Wells Fargo. The failed bid was one of the last straws for the then-struggling Citigroup, which soon was forced to accept three U.S. government bailouts in 2008 and 2009.

In July 2009, a federal judge rejected Citigroup's argument that Wachovia lacked the authority to accept Wells Fargo's offer, but Citigroup continued to seek damages.