Case
Name: Wells Fargo 2020 Securities Litigation
Settlement
Fund: $1,000,000,000
Claim
Filing Deadline: 10/05/2023
Class: 2/2/2018
-- 3/12/2020
Class
definition: all persons or entities who purchased or
otherwise acquired the common stock of Wells Fargo from February 2, 2018
through March 12, 2020, inclusive
Court
and Case Number: Northern District of California, 1:20-cv-04494
Symbol:
WFC
In 2016 the Consumer Financial Protection Bureau
announced that it would fine Wells Fargo $185 million for fraudulently signing
up millions of its customers for checking, savings, and credit card accounts
without their consent. After that, the flood: a compensation fund ($142
million), a securities class action ($480 million), a Fair Fund ($500 million),
a deferred prosecution agreement with the Department of Justice ($3 billion), a
settlement with all fifty state Attorneys General ($575 million)... The list is
not exhaustive.
And now, nearly seven years after the CFPB broke the
scandal wide open, we have another securities class action settlement—this
one more than twice the amount of the initial securities settlement, and based
on allegations Wells Fargo has failed to comply with the consent orders to fix
the problems that caused the scandal in the first place. Plaintiffs allege that
Wells had misled investors into believing it had been meeting the demands of regulators while it barely had a plan in place at all.
How
CCC Can Help
Wells Fargo is one of the most widely held stocks in
the US. If the idea of filing a vast number of claims or for all of your
clients’ accounts give you pause, then you should give us a call. In the
previous Wells Fargo securities class action and Fair Funds, Chicago Clearing filed over
100,000 claims for each settlement. Our expert team can handle any type of
trade data, figure out any type of trade, and file it in a timely and efficient
manner.
What
This Case Is About
After
the CFPB fined Wells $185 million, it also slapped it with a consent order—as did
the the Office of the Comptroller of the Currency and the Federal Reserve.
These orders were intended to both stop deceptive practices and to create an
oversite plan to ensure such a scandal did not happen again.
Plaintiffs
alleged in their amended complaint that Wells misled investors about its
compliance with these orders, when in fact their “overhaul could not even get
off the ground. Wells Fargo," plaintiffs wrote, "had yet even to submit to regulators an acceptable plan
or schedule and was nowhere near meeting the regulators’ requirements that were
a predicate to lifting the severe measures that had been imposed on the Bank. A
series of revelations, including damming congressional hearings and reports,
finally revealed to the market that the Bank had blatantly disregarded the
basic requirements set forth in the 2018 Consent Orders and made numerous
misrepresentations to the public about its compliance with those orders.”
While the market did not know about Wells Fargo’s failings, plaintiffs allege, regulators did. Plaintiffs claim that one regulator wrote that the bank’s compliance was ““so inadequate as to raise concerns about the company’s leadership.” Eventually this lack of compliance may have contributed to the departure of CEO, Tim Sloan. He announced his exit from the bank in a 2019 conference call with shareholders. At the time Reuters wrote, “analysts tried unsuccessfully to get a direct answer to whether regulators had given Sloan the final push.” Plaintiffs believe there is a connection: “The Bank’s Regulators," they state in the complaint, "were troubled by Wells Fargo’s public misrepresentations, privately condemning the Bank and specifically its then-CEO, Defendant Sloan, for lying to the public. As a result of this backlash and condemnation, Defendant Sloan was forced to resign.”
Any
questions? Call us today at 312-204-6970.
Chicago Clearing Corporation has the resources,
experience, and expertise to manage complex claims. Despite this being a
common-stock only securities litigation, the volume of trades and accounts will
make it a complex one for many investors. Give us a call today, and we can help
you focus on the markets and not on piles of claims forms.
For
More Information:
Wiki run-down of the cross-selling scandal:
https://en.wikipedia.org/wiki/Wells_Fargo_cross-selling_scandal
Plaintiff’s Consolidated Amended Class Action
Complaint:
https://www.wellsfargosecuritiesclassaction.com/Content/Documents/Amended%20Complaint.pdf
Reuters, March 28, 2019, “Wells Fargo
CEO Tim Sloan steps down”
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