Wells Fargo & Company : Auction Rate Securities

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Wells Fargo & Company : Auction Rate Securities Summary: The original Complaint alleges that Wells Fargo violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic “auctions.” Auction rate securities generally have long-term maturities or no maturity dates.

The Complaint alleges that, pursuant to uniform sales materials and top-down management directives, Wells Fargo offered and sold auction rate securities to the public as highly liquid cash-management vehicles and as suitable alternatives to money market mutual funds. According to the Complaint, holders of auction rate securities sold by Wells Fargo and others have been unable to liquidate their positions in these securities following the decision on February 13, 2008 of all major broker-dealers including Wells Fargo to “withdraw their support” for the periodic auctions at which the interest rates paid on auction rates securities are set.

The Complaint alleges that Wells Fargo failed to disclose the following material facts about the auction rate securities it sold to the class: (1) the auction rate securities were not cash alternatives, like money market funds, but were instead, complex, long-term financial instruments with 30 year maturity dates, or longer; (2) the auction rate securities were only liquid at the time of sale because broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability; and (3) broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions.

On August 6, 2008, Judge Jeffrey S. White signed the Order granting the motion to appoint lead plaintiff and lead counsel. On February 10, 2009, the lead plaintiffs filed a First Amended Class Action Complaint. On April 20, 2009, the defendants responded by filing a motion to dismiss the First Amended Class Action Complaint.

According to the Order dated January 4, 2010, on November 18, 2009, a settlement in principle between Wells Fargo Investments LLC and the California Attorney General's office was announced, pursuant to which Wells Fargo has agreed to repurchase approximately $1.3 billion from Wells Fargo clients whose funds have been frozen in the auction rate securities market; Whereas, under the settlement agreement between Wells Fargo and the California Attorney General's office, Plaintiffs Lindell Van Dyke and Sandra Olsen may be eligible for repurchase at par value of all their Wells Fargo auction rate securities at issue in this action; Whereas, the repurchase at par value of all of the Wells Fargo auction rate securities held by the Plaintiffs Lindell Van. Dyke and Sandra Olsen will resolve the claims they have asserted in the above-captioned action; Plaintiffs Lindell Van Dyke and Sandra Olsen and Defendants Wells Fargo & Co., Wells Fargo Investments, LLC, Wells Fargo Institutional Securities, LLC, We1ls Fargo Services, LLC, and Wells Fargo Bank, N.A., by and through their respective counsel, Hereby Agree And Stipulate As Follows: 1. The above-captioned action shall be conditionally dismissed subject to the actual repurchase at par value of all of the Wells Fargo auction rate securities held by Plaintiffs Lindell Van Dyke and Sandra Olsen; 2. If the Wells Fargo auction rate securities held by Plaintiffs Van Dyke and Olsen are not actually repurchased at par value, then Plaintiffs shall have the right to initiate such further proceedings in this Court as they may be legally entitled to under applicable law.

INDUSTRY CLASSIFICATION:
SIC Code: 6021
Sector: Financial
Industry: Money Center Banks

COMPANY/ISSUER NAME:	Wells Fargo & Company
COMPANY/ISSUER TICKER:	WFC
COMPANY WEBSITE:	http://www.wellsfargo.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Lindell Van Dyke, et al. v. Well Fargo & Company , et al.

COURT: N.D. California	DOCKET NUMBER: 08-CV-01962
JUDGE NAME: Hon. Jeffrey S. White
DATE FILED: 04/14/2008	SOURCE: Notice of Filing
CLASS PERIOD START: 04/14/2003	CLASS PERIOD END: 02/13/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Girard Gibbs LLP (San Francisco) 601 California Street, Suite 1400, San Francisco, CA, 94108 (voice) 415.981.4800, (fax) 415.981.4846, mail@girardgibbs.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 04/14/2008
Declaration Of Jonathan K. Levine In Support Of Van Dyke Group's Motion For Appointment As Lead Plaintiff And Approval Of Selection Of Counsel
Type: Declaration		Date on the document: 06/13/2008
[Proposed] Order Granting The Van Dyke Group's Motion For Appointment As Lead Plaintiff And Approving Lead Plaintiff's Selection Of Counsel
Type: Order		Date on the document: 06/13/2008
Van Dyke Group's Notice Of Motion For Appointment As Lead Plaintiff And Approval Of Selection Of Counsel And Points And Authorities In Support Thereof
Type: Motion		Date on the document: 06/13/2008
Order Granting The Van Dyke Group's Motion For Appointment As Lead Plaintiff And Approving Lead Plaintiff's Selection Of Counsel
Type: Order Appointing LP/LC		Date on the document: 08/06/2008
Stipulation and Order Consolidating Cases
Type: Order of Consolidation		Date on the document: 12/09/2008
Order Granting Lead Plaintiffs ' Administrative Motion Re December 9, 2008 Order Consolidating Cases
Type: Order of Consolidation		Date on the document: 12/19/2008
Order Vacating Order Granting Stipulation For Consolidation
Type: Order of Consolidation		Date on the document: 01/08/2009

REFERENCE COMPLAINT

Lindell Van Dyke, et al. v. Wells Fargo & Company, et al.

COURT: N.D. California	DOCKET NUMBER: 08-CV-01962
JUDGE NAME: Hon. Jeffrey S. White
DATE FILED: 02/10/2009	SOURCE: Docket
CLASS PERIOD START: 04/14/2003	CLASS PERIOD END: 02/13/2008
TYPE OF COMPLAINT: First Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Girard Gibbs LLP (San Francisco) 601 California Street, Suite 1400, San Francisco, CA, 94108 (voice) 415.981.4800, (fax) 415.981.4846, mail@girardgibbs.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
First Amended Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 02/10/2009
Lead Plaintiffs’ Memorandum In Opposition To Defendants’ Motion To Dismiss
Type: Memorandum		Date on the document: 05/29/2009
Request For Judicial Notice In Support Of Lead Plaintiffs' Opposition To Defendants' Motion To Dismiss
Type: Other		Date on the document: 05/29/2009
Lead Plaintiffs’ Statement Of Recent Decision
Type: Other		Date on the document: 10/06/2009
Joint Rule 26(f) Report And Case Management Conference Statement
Type: Other		Date on the document: 10/16/2009
Stipulation And Order Conditionally Dismissing Claims
Type: Order		Date on the document: 01/04/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 01/04/2010

OTHER DOCUMENTS
Class Action Complaint For Violations Of Federal Securities Laws
Case Name and/or Number: Michael Jungbluth, et al. v. Well Fargo & Company , et al.
Type: Complaint		Date on the document: 06/11/2008
Notice Of Removal Pursuant To 28 U.S.C. § 1331, 1337, 1441, And 144.6
Case Name and/or Number: Donald F. Hildre, et al. v. Wells Fargo Bank, Ltd., et al.
Type: Court Transfer Order		Date on the document: 07/08/2008
Order Denying Transfer
Case Name and/or Number: In Re: Auction Rate Securities (ARS) Marketing Litigation
Type: Other		Date on the document: 10/09/2008
U.S. District Court Civil Docket
Case Name and/or Number: Donald F. Hildre, et al. v. Wells Fargo Bank, Ltd. et al.
Type: Docket		Date on the document: 11/26/2008
U.S. District Court Civil Docket
Case Name and/or Number: Donald F. Hildre, et al. v. Wells Fargo Bank, Ltd. et al.
Type: Docket		Date on the document: 12/09/2008

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