(Reuters) - Wells Fargo & Co
The settlement, disclosed in court papers filed in U.S. District Court in Santa Ana, California, followed a judge's decision earlier this month rejecting Wells Fargo's bid to dismiss the case.
The lawsuit stemmed from the collapse of Medical Capital Holdings Inc. The U.S. Securities and Exchange Commission sued Medical Capital and two executives for fraud in July 2009, and the company was soon shut down.
The investors, who had bought notes issued by three Medical Capital special purpose companies, had reached a $114 million settlement with Bank of New York Mellon Corp
(Reporting by Nate Raymond in New York; Editing by Bernard Orr)