Wells Fargo & Company
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) securities during the period from April 5, 2020 through May 5, 2020 (the “Class Period”). Investors have until August 3, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Wells Fargo planned to, and did, improperly allocate government-backed loans under the Paycheck Protection Program (“PPP”), and/or had inadequate controls in place to prevent such misallocation; and (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.
On April 19, 2020, USA Today reported that a “lawsuit filed on behalf of small business owners on Sunday alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government’s small business agency has said that PPP loan applications would be processed on a first-come, first-served basis.” According to the lawsuit, “[t]he move by Wells Fargo meant that the bank would receive millions more dollars in processing fees,” and, “[m]aking matters worse, Wells Fargo concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money.” On this news, Wells Fargo shares fell $1.54, or 5.4%, over two trading days to close at $26.84 per share on April 21, 2020.
On May 5, 2020, Wells Fargo disclosed that, in addition to multiple PPP-related lawsuits initiated against the Company, Wells Fargo had “received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans.” On this news, Wells Fargo shares fell $1.92, or 7.0%, over two trading days to close at $25.61 per share on May 6, 2020.
If you acquired Wells Fargo securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.