Wells Fargo Mortgage-Backed Securities Class Action Lawsuit 01/29/2009

If you purchased Wells Fargo Mortgage-Backed Securities 2006-1 offering, 2006-2 offering, 2006-3 offering, 2006-4 offering, 2006-6 offering, 2006-
AR1 offering, 2006-AR2 offering, 2006-AR4 offering, 2006-AR5 offering, 2006-AR6 offering, 2006-AR8 offering, 2006-AR10 offering, 2006-AR11 offering, 2006-AR12 offering, 2006-AR14 offering, 2007-AR4 offering, 2007-10 offering, 2007-13 offering, and 2006-AR15 offering, and Wells Fargo Alternative Loan 2007-PA1 offering, you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Wells Fargo & Company
Case Name: 
Wells Fargo & Company Shareholder Class Action Lawsuit 01/29/2009
Case Status: 
Settlement Approved
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/29/2009
Class Period Begin: 
01/01/2007
Class Period End: 
10/31/2007
Court of Filing: 
U.S. District Court for the Northern District of California
Date Settled: 
11/14/2011
Settlement Amount: 
$125,000,000
Deadline to Participate in Settlement: 
12/07/2011
Summary: 

The settlement includes persons or entities that purchased or otherwise acquired mortgage pass-through certificates pursuant or traceable to Wells Fargo Asset Securities Corporation’s July 29, 2005 Registration Statement, October 20, 2005 Registration Statement, or September 27, 2006 Registration Statement, and the prospectuses and prospectus supplements in the following 28 offerings and were damaged thereby: The WFMBS 2006-1 offering, WFMBS 2006-2 offering, WFMBS 2006-3 offering, WFMBS 2006-4 offering, WFMBS 2006-6 offering, WFMBS 2006-AR1 offering, WFMBS 2006-AR2 offering, WFMBS 2006-AR4 offering, WFMBS 2006-AR5 offering, WFMBS 2006-AR6 offering, WFMBS 2006-AR8 offering, WFMBS 2006-AR10 offering, WFMBS 2006-AR11 offering, WFMBS 2006-AR12 offering, WFMBS 2006-AR14 offering, WFMBS 2006-AR17 offering, WFMBS 2007-11 offering, WFMBS 2006-7 offering, WFMBS 2006-10 offering, WFMBS 2006-AR16 offering, WFMBS 2006-18 offering, WFMBS 2006-AR19 offering, WFMBS 2006-20 offering, WFALT 2007-PA1 offering, WFMBS 2007-AR4 offering, WFMBS 2007-10
offering, WFMBS 2007-13 offering, and WFMBS 2006-AR15 offering from January 1, 2007 through October 31, 2007, inclusive, and who were damaged thereby.

Trust 2007-AR5 Certificates; 1-A1A, 1-A2A, 1-A12B, 1-12IO, 1-A3A, 1-A3B, 1-3IO, 2-A1A, 2-A2A, 2-AB, 2-AIO, 1-B1, 1-B2, 1-B3, 1-B4, 1-B5, 1-B6, 2-B1, 2-B2, 2-B3, 2-B4, 2-B5, 2-B6, 2-BIO

Trust 2007-WFHE2 Certificates; A1, A2, A3, A4, M1, M2, M3, M4, M5, M6, M7, M8, M9, M10

May 30, 2013 - The court ordered the authorization of the distribution of the net settlement fund.

November 14. 2011 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

July 26, 2011 - The court preliminarily approved the settlement.

July 6, 2011 - Parties filed a stipulation of settlement.

October 5, 2010 - The court granted in part and denied in part the defendants motions' to dismiss.

June 25, 2010 - The defendants filed a motion to dismiss.

May 28, 2010 - The lead plaintiff filed an amended complaint.

April 22, 2010 - The court granted in part and denied in part the defendants' motions to dismiss.

October 30, 2009 - The defendants filed motions to dismiss.

August 31, 2009 - The lead plaintiff filed a consolidated complaint.

July 16, 2009 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

June 1, 2009 - Lead plaintiff motions were filed.

April 6, 2009 - The plaintiff that filed the January 29, 2009 complaint filed a notice of voluntary dismissal, dismissing their claims without prejudice against all defendants.

March 27, 2009 - Another investor filed a complaint in the U.S. District Court for the Northern District of California.

January 29, 2009 - An investor in shares of Wells Fargo Mortgage-Backed Securities, filed a lawsuit in the U.S. District Court for the Southern District of New York against Wells Fargo Asset Securities Corporation over alleged violations of Federal Securities Laws pursuant and/or traceable to the false and misleading registration statement and prospectus supplements issued during 2006.

The complaint alleges violations of Sections 11, 12 and 15 of the Securities Act of 1933, filed on behalf of investors who purchased Wells Fargo Mortgage-Backed Securities and Wells Fargo Asset Securities Certificates, backed by pools of fully amortizing, one- to four family, adjustable interest rate, residential first mortgage loans, pursuant to or traceable to the various certificate offerings throughout 2006.

The certificates were issued pursuant to a Form S-3 Registration Statement filed with the Securities Exchange Commission on or about July 29, 2005. The initial Registration Statement was thereafter amended by the filing of a supplemental Form S-3/A on January 31, 2006.

Following the issuance of the certificates, disclosures began to emerge revealing Wells Fargo Bank routinely disregarded the underwriting guidelines in its mortgage loan origination. These disclosures were confirmed by substantially higher rates of delinquencies and foreclosures on collateral for such highly-rated debt issues. These disclosures, and the poor performance of the collateral, caused the Rating Agencies to review and revise the ratings assigned to the certificates due to the fact that the true nature of the collateral had not been properly assessed at the time of the offerings. The rating agencies dramatically downgraded the certificates
dramatically beginning in August 2008, resulting from the revelations regarding the true underwriting practices used to originate the collateral and the true value and quality of the certificate collateral, which subsequently caused the substantial decline in the value of the certificates. Plaintiff purchased certificates issued by one or more of the Wells Fargo Mortgage-Backed Securities Trusts pursuant to the registration statements described herein. However, as of the date the within
action was commenced, plaintiff's investment suffered a decline of over 60 percent.

Wells Fargo Asset Securities Corporation is the depositor for the offerings, and the parent company of issuers. Wells Fargo Asset Securities Corporation is a direct and wholly owned subsidiary of Wells Fargo Bank, NA.