|Company Name||Wells Fargo & Company|
|Class Period||October 13, 2017 to October 13, 2020|
|Motion Deadline||December 29, 2020|
The Thornton Law Firm announces that a class action lawsuit has been filed on behalf of investors of Wells Fargo & Company (NYSE: WFC). Investors who purchased WFC common stock or other securities between October 13, 2017 and October 13, 2020 may contact the Thornton Law Firm to obtain a copy of the complaint or to discuss the lead plaintiff process. Interested investors are encouraged to submit their information above. Investors may email email@example.com or call 617-531-3917. Interested Wells Fargo investors have until December 29, 2020 to apply to be a lead plaintiff.
The case alleges that Wells Fargo and its executives concealed their actual business practices and misrepresented the attendant risks to investors rather than disclosing the true facts regarding its commercial lending practices.
Specifically, it is alleged that Wells Fargo reassured investors that its commercial credit portfolios were of exceptional credit quality and the product of robust, industry-leading underwriting and due diligence policies and procedures. In reality, however, Wells Fargo fueled its rapid commercial loan growth by lending to businesses that posed a heightened risk of default and systematically concealed these credit risks by artificially inflating the incomes generated by borrowing businesses, relaxing or failing to follow applicable underwriting procedures, and circumventing applicable risk controls. The Complaint also alleges that Wells Fargo exacerbated the threat posed by its defective commercial debt by packaging the loans into CLOs and CMBS and widely distributing these securitized products throughout the financial system.
In the release of its financial results, Wells Fargo revealed it would be taking multiple provision expenses to account for expected credit delinquencies. In connection with this news Wells Fargo’s stock price declined, allegedly harming investors.
The lawsuit alleges violations of the federal securities laws. The Private Securities Litigation Reform Act of 1995 allows any investor who purchased the securities at issue in the case during the Class Period to seek appointment as a lead plaintiff in the lawsuit. A lead plaintiff acts on behalf of all other investor class members in managing theclass action and can select a law firm of their choice to litigate the lawsuit. Serving as a lead plaintiff does not impact an investor’s share in any potential recovery. Investors do not need to be a lead plaintiff to be a member of the class. If investors choose to take no action, they can remain an absent class member. Interested Wells Fargo investors have until December 29, 2020 to apply to be a lead plaintiff. The class has not yet been certified. Until certification occurs, investors are not represented by an attorney.
Thornton Law Firm’s securities attorneys are highly experienced in representing investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of investors. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.