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The Law Firm of Barbuto & Johansson, P.A. Announces That A Securities  Class Action Lawsuit Has Been Filed Against  Wells Fargo & Company For Alleged PPP Related Misrepresentations; Shares Fell More than 6% on Reported News

2020-06-09 09:23 ET - News Release

WELLINGTON, Fla., June 09, 2020 (GLOBE NEWSWIRE) -- Barbuto & Johansson, P.A. (“BARJO”) and Of Counsel, Neil Rothstein, Esq. (with over 30 years of Securities Class Action experience including cases against ENRON and Halliburton), remind investors that they have until August 3, 2020 to contact the Firm to learn more about the class action filed against Wells Fargo & Company (NYSE: WFC) and appointment and qualifications to be considered for the role of lead plaintiff.

On April 5, 2020, Wells Fargo proclaimed that it had received significant interest in a program under the Coronavirus Aid, Relief, and Economic Security Act, the Paycheck Protection Program (“PPP”), and intended to distribute a total of $10 billion to small business customers through it.  Then, on May 5, 2020, Wells Fargo filed its quarterly report on Form 10-Q, disclosing that in addition to multiple PPP-related lawsuits, Wells Fargo had “received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans.”  On this news, the company’s share price declined over 6% over the next two trading days.

The class action has been brought against Wells Fargo and certain of its executives and alleges that throughout the Class Period (April 5, 2020 to May 5, 2020), Defendants failed to disclose to investors that: (i) Wells Fargo planned to, and did, improperly allocate government-backed loans under the PPP, and/or had inadequate controls in place to prevent such misallocation; (ii) the foregoing foreseeably increased the Company's litigation risk with respect to PPP allocation, as well as increased regulatory scrutiny and/or potential enforcement actions; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.

If you purchased Wells Fargo shares between April 5, 2020 and May 5, 2020, and would like to discuss your rights or interests regarding this class action and/or serve as lead plaintiff, you can call Anthony Barbuto at 888-715-2520 (office), text or call at 561-531-8221 (cellular) or email anthony@barjolaw.com. You can also email Neil Rothstein at neil@barjolaw.com.

Barbuto & Johansson, P.A.
Anthony Barbuto, Esq.
12773 Forest Hill Blvd., 101
Wellington, FL 33414

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