SAN FRANCISCO, Oct. 05, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in Wells Fargo (NYSE:WFC) that a securities fraud class action lawsuit has been filed in the U.S. District Court for the Northern District of California, and the Lead Plaintiff deadline is November 25, 2016.
If you purchased or otherwise acquired securities of WFC between February 26, 2014 and September 15, 2016 and suffered over $100,000 in losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/WFC
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing WFC@hbsslaw.com.
On September 8, 2016, the U.S. Consumer Financial Protection Bureau (“CFPB”) publicized a Consent Order detailing Wells Fargo’s fraudulent cross-selling practices within its Community Banking division. The Company’s practices included illegally opening millions of unauthorized deposit and credit card accounts. The CFPB fined the Company more than $185 million related to the conduct.
On September 20, 2016, Wells Fargo’s Chairman of the Board and CEO, John G. Stumpf, allegedly testified before the U.S. Senate Committee on Banking, Housing and Urban Affairs that Wells Fargo’s board knew by late 2013 that Company employees had committed fraud in 2013. On September 28, 2016, Stumpf admitted to Congress that the Board of Directors knew of the fraud as early as 2011.
Nonetheless, the head of Wells Fargo’s Community Banking division, Carrie Tolstedt, was permitted to retire with a reported compensation package of over $90 million. During the class period Stumpf and Tolstedt together sold Wells Fargo shares for proceeds of approximately $31 million and received incentive compensation in excess of $48 million.
“Wells Fargo touted its ethical practices as well as the success of its program to sign up existing customers to multiple accounts and offerings, yet it knew it was lying about ethics, and knew their success was built on fraud,” said Hagens Berman partner Reed Kathrein. “This case sadly reflects how America’s financial leaders continue to lack consideration for investors and consumers.” Hagens Berman continues to investigate Wells Fargo and welcomes information from witnesses.
Whistleblowers: Persons with non-public information regarding Wells Fargo should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email WFC@hbsslaw.com.
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