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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.
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. | |||||||||||||||||
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| REFERENCE COMPLAINT | |||||||||||||||||
| Lindell Van Dyke, et al. v. Wells Fargo & Company, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| 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 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 10/22/2009 | ||
| 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 | ||
| First Amended Class Action Complaint For Violations Of Federal Securities Laws | |||
| Case Name and/or Number: Lindell Van Dyke, et al. v. Well Fargo & Company , et al. | |||
| Type: Complaint | Date on the document: 02/10/2009 | ||
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