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 Southern District of New York on behalf of those who acquired Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) securities during the period from February 2, 2018 through March 10, 2020. Investors have until August 10, 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 had inadequate disclosure controls and procedures and internal controls over financial reporting, particularly with respect to its risk and compliance management, policies and programs; (ii) the Company was not compliant with the regulatory consent orders entered into in 2018; (iii) the Company’s remedial plans were inadequate, incomplete, and insufficient to prevent from future consumer abuses; (iv) as a result of the continued noncompliance with the regulatory consent orders, the Company was threatened with supervisory and/or enforcement actions and penalties; and (v) the Company’s remedial measures and risk and compliance management remained inadequate to protect against consumer fraud.
On March 4, 2020, the U.S. House Financial Services Committee published a report revealing that Wells Fargo “fell woefully” short of implementing meaninful corporate reforms and that its risk and compliance policies remained dangerously inadequate to prevent another consumer fraud from occuring. On this news, Wells Fargo shares fell $4.31, or 10.4%, over two trading days to close at $37.09 per share on March 6, 2020.
On March 10, 2020, the Chairwoman of the U.S. House Financial Services Committee requested that the U.S. Department of Justice investigate Wells Fargo’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 regulatory consent orders and its progress in developing and implementing effective and meaninful reforms. On this news, Wells Fargo shares fell $7.43, or 21.5%, over two trading days to close at $27.20 per share on March 12, 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.