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NEW YORK–(COMMERCIAL THREAD(NYSE: WFC) between April 5, 2020 and May 5, 2020 (the “Class Period”). Investors have until August 8, 2020 to ask the court to be named lead plaintiffs in the lawsuit.
Click on here to participate in the action.
On April 5, 2020, Wells Fargo announced that it had generated great interest in the Paycheck Protection Program (“PPP”), a program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) , and aimed to distribute a total of $ 10 billion to small business clients under PPP requirements.
On April 8, 2020, the Federal Reserve announced it would allow Wells Fargo to exceed the asset cap it imposed on Wells Fargo in 2018 after revelations the company had opened millions of accounts on behalf of clients. without their approval, a change that would allow Wells Fargo to extend additional loans to small businesses under the P3.
On the same day, Wells Fargo issued a press release stating, in the relevant part, that, “commencing immediately, in response to the actions of the Federal Reserve, [Wells Fargo] will extend its participation in the [PPP] and provide loans to a broader set of its small businesses and not-for-profit clients, in accordance with the terms of the program. ”
On April 19, 2020, after at least one legal action was taken against the company, reports revealed that Wells Fargo may have unfairly allocated government-guaranteed loans under the P3. For example, USA today reported that “[t]The lawsuit filed on behalf of small business owners on Sunday alleges Wells Fargo unfairly prioritized businesses seeking large loans, while the government small business agency said PPP loan applications would be processed on the principle of first come, first served. According to the lawsuit, “[t]it moved by Wells Fargo meant the bank would receive millions of dollars in additional processing fees, “and,”[m]Worse yet, Wells Fargo has kept from the public that it reshuffles the PPP requests it receives and prioritizes the requests that would make the most money for the bank.
Following this news, the Wells Fargo share price fell more than 5% over two trading days to close at $ 26.84 per share on April 21, 2020.
Finally, on May 5, 2020, Wells Fargo filed a Quarterly Report on Form 10-Q with the Securities and Exchange Commission, revealing, in addition to multiple PPP-related lawsuits against the company, that Wells Fargo had “received Formal and informal inquiries from federal and state government agencies regarding its PPP loan offerings.
Following this news, the Wells Fargo share price fell more than 6% over two trading days from its May 4, 2020 closing price, closing at $ 25.61 per share on May 6, 2020.
The complaint, filed on June 4, 2020, alleges that throughout the Class Period, the Defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and Wells Fargo Outlook. Specifically, the defendants failed to disclose to investors that: (i) Wells Fargo had planned to inappropriately allocate government guaranteed loans under the PPP and / or had inadequate controls in place to prevent a such allowance; (ii) the foregoing has predictably increased the Company’s risk of litigation with respect to the PPP award, as well as increased regulatory oversight and / or potential enforcement actions; and (iii) accordingly, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased securities of Wells Fargo during the Class Period, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in it. of these questions, please contact Melissa Fortunato or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Past results do not guarantee similar results.
