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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo & Company (WFC) Investors

2020-07-17 12:00 ET - News Release

Shareholders with $1,000,000 in losses or more are encouraged to contact the firm


LOS ANGELES -- (Business Wire)

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Wells Fargo & Company ("Wells Fargo" or the "Company") (NYSE: WFC) securities between February 2, 2018, and March 10, 2020, inclusive (the “Class Period”). Wells Fargo investors have until August 14, 2020 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On February 2, 2018, Wells Fargo entered into a consent order with the Board of Governors of the Federal Reserve System (the “FRS Consent Order”), committing to comply with directives regarding its governance and risk management policies. The FRS Consent Order was part of an enforcement action brought against the Company in connection with certain of its fraudulent practices.

Then, on March 4, 2020, a 113-page report revealed that Wells Fargo “fell woefully” short of implementing meaningful corporate reforms and that its risk and compliance policies remained dangerously inadequate to prevent another consumer fraud from occurring, thereby violating the FRS Consent Order.

On this news, the Company’s share price fell $2.50, or over 6%, to close at $38.90 on March 5, 2020.

Then, on March 10, 2020, the U.S. House Financial Services Committee Chairwoman Maxine Waters requested that the U.S. Department of Justice (“DOJ”) investigate the Company’s former CEO, for providing false statements in the context of his public testimony a year earlier, in March 2019, which directly related to Wells Fargo’s compliance with the FRS and OCC Consent Orders and its progress in developing and implementing effective and meaningful reforms.

On this news, the Company’s share price fell $2.75, or over 7%, to close at $32.33, thereby injuring investors.

The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that Wells Fargo had inadequate disclosure controls and procedures and internal controls over financial reporting, particularly with respect to its risk and compliance management, policies and programs; (2) that the Company was not compliant with the regulatory consent orders entered into in 2018; (3) that the Company’s remedial plans were inadequate, incomplete, and insufficient to prevent from future consumer abuses; (4) that as a result of the continued noncompliance with the regulatory consent orders, the Company was threatened with supervisory and/or enforcement actions and penalties; (5) that the Company’s remedial measures and risk and compliance management remained inadequate to protect against consumer fraud; (6) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis and omitted materials facts. Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Wells Fargo securities during the Class Period, you may move the Court no later than August 14, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Wells Fargo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts:

The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com

Source: The Law Offices of Frank R. Cruz

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