Wells Fargo Settles Merchant Suit
San Francisco, Wells Fargo & Co., the No. 5 U.S. bank, agreed to settle a California lawsuit and will pay from $19 million to $34 million as part of the deal. The nation’s fifth largest bank, which denied any wrongdoing, was accused of charging excessive credit card processing fees. In a statement, Wells Fargo said it was pleased with the settlement, adding that it “has always made full disclosures to merchants” about billing practices.
A&P Restructures Debt With Tender Offers
Montvale, N.J., The Great Atlantic & Pacific Tea Co. Inc. cashed in some of its outstanding notes with tender offers to help with the company’s debt. Senior retail analyst Mariza Costa believes the move makes sense because A&P previously had to pay interest on the notes that total in the millions of dollars. Costa said, “Interest expenses will decline substantially per quarter, and the company can concentrate on reorganizing and restructuring.”
The company, which has been having financial difficulties, plans to reorganize and become a “New A&P.”
Grass Sentence Reduced by a Year
Harrisburg, Pa., Former Rite Aid Corp. CEO Martin L. Grass had a year removed from his eight-year sentence. He is serving prison time for conspiring to obstruct justice and to defraud the company and its shareholders.