US Bancorp Board Faces Investor Lawsuit Over Fake Account Claims

A US Bancorp investor sued its senior leaders, blaming lack of oversight and warped pay incentives for the allegedly widespread practice of opening fake or unauthorized accounts in the names of customers.

The lawsuit, made public Wednesday, targets members of the bank’s board and management with claims for fiduciary breach, unjust enrichment, and insider trading. It accuses them of knowingly adopting a compensation system that led directly to rampant violations, even as they falsely touted ethical practices in the wake of a similar scandal at Wells Fargo & Co.

“This illegal conduct was not unexpected or surprising, as it directly ...