Wells Fargo & Company Class Action Lawsuit
- Company Name
- Wells Fargo & Company
- Stock Symbol
- Class Period
- April 5, 2020 to May 5, 2020
- Motion Deadline
- August 3, 2020
- Northern District of California
The Wells Fargo & Company class action lawsuit charges Wells Fargo and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Wells Fargo’s securities between April 5, 2020 and May 5, 2020, inclusive (the “Class Period”). The Wells Fargo class action lawsuit was commenced on June 4, 2020 in the Northern District of California and is captioned Ma v. Wells Fargo & Company, No. 20-cv-03697.
Wells Fargo is a diversified financial services company that provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally.
The Wells Fargo class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) Wells Fargo planned to, and did, improperly allocate government-backed loans under the Paycheck Protection Program (“PPP”) and/or had inadequate controls in place to prevent such misallocation; (ii) the foregoing foreseeably increased Wells Fargo’s litigation risk with respect to PPP allocation as well as the risk of regulatory scrutiny and/or potential enforcement actions; and (iii) as a result, Wells Fargo’s public statements were materially false and misleading at all relevant times.
On April 19, 2020, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP. For example, USA Today reported that a “lawsuit filed on behalf of small business owners . . . alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government’s small business agency has said that PPP loan applications would be processed on a first-come, first-served basis.” According to the lawsuit, “[t]he move by Wells Fargo meant that the bank would receive millions more dollars in processing fees.” On this news, the price of Wells Fargo stock fell more than 5% over two trading days to close at $26.84 per share on April 21, 2020.
Then, on May 5, 2020, Wells Fargo filed a quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission disclosing that, in addition to multiple PPP-related lawsuits that had been initiated against Wells Fargo, Wells Fargo had “received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans.” On this news, the price of Wells Fargo stock declined by more than 6% over two trading days, falling to a close of $25.61 per share on May 6, 2020.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Wells Fargo securities during the Class Period to seek appointment as lead plaintiff in the Wells Fargo class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Wells Fargo class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Wells Fargo class action lawsuit. An investor’s ability to share in any potential future recovery of the Wells Fargo class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Wells Fargo class action lawsuit or have questions concerning your rights regarding the Wells Fargo class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Wells Fargo class action lawsuit must be filed with the court no later than August 3, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.