Wells Fargo & Co (NYSE: WFC) Investor Securities Class Action Lawsuit 09/26/2016

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Company Name(s): 
Wells Fargo & Company
Case Name: 
Wells Fargo & Company Shareholder Class Action Lawsuit 09/26/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 
Settlement Notice: 
Settlement Proof: 

December 18, 2018 – Order granting final approval of class action settlement and motion for attorneys’ fees and expenses.

September 4, 2018 - The court preliminarily approved the settlement.

July 31, 2018 - Parties filed a stipulation of settlement.

March 15, 2018 - The lead plaintiff filed a second amended consolidated complaint on behalf of investors who purchased Wells Fargo & Co (NYSE: WFC) common shares between February 26, 2014 and September 20, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 26, 2014 and September 20, 2016.

February 27, 2018 - The court granted in part and denied in part defendants' motion to dismiss.

June 19, 2017 - Defendants filed motions to dismiss.

March 6, 2017 - The lead plaintiff filed an amended complaint.

January 5, 2017 - Lead plaintiff and lead counsel were appointed.

November 25, 2016 - Lead plaintiff motions were filed.

September 26, 2016 - An investor in shares of Wells Fargo & Co (NYSE: WFC) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Wells Fargo & Co in connection with certain allegedly false and misleading statements made between February 26, 2014 and September 15, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Wells Fargo & Co (NYSE: WFC) common shares between February 26, 2014 and September 15, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 26, 2014 and September 15, 2016 the defendants made allegedly false and misleading statements and/or failed to disclose that Wells Fargo's cross-selling efforts to retail customers were neither designed to meet customers' financial needs nor drive customer satisfaction, but rather were the product of a carefully designed system that resulted in the Company illegally, through forgery and other electronic means, opening millions of deposit and credit card accounts for customers without their knowledge in an effort to generate fee income for Wells Fargo and compensation rewards for Wells Fargo employees, including defendants.

Furthermore, the plaintiff alleges that Wells Fargo also failed to disclose that an ongoing internal investigation had in fact determined by the beginning of the Class Period that employees in the Community Banking segment had engaged in a wide ranging scheme to inflate the Company's financial performance figures by opening millions of unauthorized deposit and credit card accounts, ultimately resulting in more than 5,000 employee terminations.

On September 7, 2016, the Consumer Financial Protection Bureau ("CFPB") announced that it had fined Wells Fargo & Co a record $100 million for the alleged widespread illegal practice of secretly opening unauthorized deposit and credit card accounts, citing the Company's own estimate that its employees had opened more than two million unauthorized accounts since 2011. In addition to the CFPB fine, Wells Fargo & Co agreed to pay $35 million to the Office of the Comptroller of the Currency and $50 million to the City and County of Los Angeles.

On September 12, 2016, the U.S. Senate Committee on Banking, Housing, and Urban Affairs announced that it will hold a hearing to further explore charges that thousands of the bank's employees secretly opened accounts and enrolled customers in services without their consent.

On September 13, 2016, Wells Fargo & Co announced that it will eliminate all product sales goals in its retail banking operations.