Lawsuit filed for Investors in shares of Wells Fargo & Company (NYSE: WFC)

An investor, who purchased shares of Wells Fargo & Company (NYSE: WFC), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Wells Fargo & Company in connection with certain allegedly false and misleading statements..

Investors who purchased shares of Wells Fargo & Company (NYSE: WFC) have certain options and for certain investors are short and strict deadlines running. Deadline: August 3, 2020. NYSE: WFC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

San Francisco, CA based Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally.

On April 5, 2020, Wells Fargo & Company announced that it had received strong interest in the Paycheck Protection Program ("PPP"), a program under the Coronavirus Aid, Relief, and Economic Security Act, and was targeting to distribute a total of $10 billion to small business customers under the requirements of the PPP.

On April 8, 2020, the Federal Reserve announced that it would allow Wells Fargo & Company to exceed the asset cap that it had imposed on Wells Fargo in 2018 after revelations that the Company had opened millions of accounts in customers' names without their permission, a change would allow Wells Fargo to make additional small business loans as part of the PPP.

On April 8, Wells Fargo & Company also issued a press release stating that "beginning immediately, in response to the actions by the Federal Reserve, [Wells Fargo] will expand its participation in the Paycheck Protection Program and offer loans to a broader set of its small business and nonprofit customers subject to the terms of the program."

Then, on April 20, 2020, after at least two lawsuits were filed against Wells Fargo & Company, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP.

Finally, on May 5, 2020, Wells Fargo & Company disclosed in an SEC filing that "it has . . . received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans."

The plaintiff claims that between April 5, 2020, and May 5, 2020, the defendants failed to disclose to investors that 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, that 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 that as a result, the Company’s public statements were materially false and misleading at all relevant times.

Those who purchased shares of Wells Fargo & Company (NYSE: WFC) have certain options and should contact the Shareholders Foundation.

Media Contact:
Christopher Clausen
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.