Wells Fargo Bank : Mortgage-Backed Securities

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright (c) 2001
Stanford Law School

Wells Fargo Bank : Mortgage-Backed Securities Summary: According to the complaint, following the issuance of the Certificates, disclosures began to emerge revealing the defendant routinely disregarded the underwriting guidelines in its mortgage loan origination. These disclosures were confirmed by substantially higher rates of delinquencies and foreclosures on collateral for such highly-rated debt issues. These disclosures, and the poor performance of the collateral, caused the Rating Agencies to review and revise the ratings assigned to the Certificates due to the fact that the true nature of the collateral had not been properly assessed at the time of the Offerings. The rating agencies dramatically downgraded the Certificates dramatically beginning in August 2008, resulting from the revelations regarding the true underwriting practices used to originate the collateral and the true value and quality of the Certificate collateral, which subsequently caused the substantial decline in the value of the Certificates.

Plaintiff purchased certificates issued by one or more of the defendant pursuant to the Registration Statements described herein. However, as of the date the within action was commenced, Plaintiff's investment suffered a decline of over 60 percent. The claims asserted herein under the Securities Act do not sound in or arise from allegations of fraud.

Several class action complaints have also been filed in the U.S. District Court for the Northern District of California on behalf of purchasers of Wells Fargo Asset Securities Corporation Mortgage Pass-Through Certificates pursuant and/or traceable to the false and misleading July 29, 2005 Registration Statement and Prospectus Supplements, October 20, 2005 Registration Statement and Prospectus Supplements or the false and misleading September 27, 2006 Registration Statement and Prospectus Supplements (collectively, the "Certificates").

On April 6, 2009, the complaint filed by Boilermaker-Blacksmith National Pension Trust in the U.S. District Court for the Southern District of New York was voluntarily dismissed pursuant to Rule 41(a)(1)(A)(i) of the Federal Rules of Civil Procedure. The case is continuing in similar actions filed in the U.S. District Court for the Northern District of California.

On July 16, 2009, Judge Susan Illston signed the order denying the pending motion to change venue and granted the motion for consolidation, appointment of lead plaintiff and selection of lead counsel. According to the Order, the cases are consolidated under General Retirement System of the City of Detroit, et al. v. The Wells Fargo Mortgage Backed Securities 2006-AR18 Trust, et al. , case number 09-CV-01376. Louisiana Sheriffs' Pension and Relief Fund, Alameda County Employees' Retirement Association, New Orleans Employees' Retirement System and the Government of Guam Retirement Fund are appointed lead plaintiffs. Bernstein Litowitz Berger & Grossmann LLP is selected as lead counsel for the class. On August 31, 2009, the lead plaintiffs filed a Consolidated Class Action Complaint for Violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. On October 30, 2009, the various defendant groups filed three motions to dismiss the Consolidated Class Action Complaint.

On February 3, 2010, a Memorandum Opinion was entered dismissing defendants The McGraw-Hill Companies and Moody’s Inc.

According to the Order entered on April 22, 2010, the Court hereby grants the Rating Agency Defendants’ motion to dismiss without leave to amend. (Docket No. 157). The Court grants in part and denies in part the Underwriter Defendants’ and the Wells Fargo Defendants’ motions to dismiss (Docket No. 160, 161). Plaintiffs are granted leave to amend their claims against the Underwriter Defendants and Wells Fargo Defendants and must file their amended complaint no later than May 7, 2010.

On June 2, 2010, the lead plaintiffs filed a Amended Consolidated Class Action Complaint. On June 25, 2010, the defendants filed two motions to dismiss the Amended Consolidated Class Action Complaint. On October 5, 2010, Judge Lucy H. Koh granted in part and denied in part the motion to dismiss filed by defendants Wells Fargo Bank, Wells Fargo & Co., and the individual defendants. The underwriter defendants' motion to dismiss was granted. The plaintiffs have filed a Notice of Appeal from that order granting the underwriter defendants' motion to dismiss. On November 18, 2010, the plaintiffs filed a motion of entry judgment, which was granted on December 27, 2010. A Notice of Appeal was filed as to that order.

On February 11, 2011, the plaintiffs filed a motion to certify the class.

According to a press release dated July 7, 2011, Wells Fargo & Co. agreed to pay $125 million to settle accusations by investors that the bank misled them about the risks of mortgage-backed securities it sold. The plaintiffs in the consolidated group case, or class action, include the General Retirement System of Detroit, New Orleans Employees' Retirement System and other public pensions, according to the proposed settlement filed yesterday in federal court in San Jose, California. Wells Fargo, the largest U.S. home lender, and several investment banks that underwrote the securities were sued in 2009 over alleged violations of securities laws in connection with sales of $36 billion in mortgage pass-through certificates in 2005 and 2006. The securities were backed by pools of mortgage loans that Wells Fargo or its affiliates originated or purchased. In 28 offerings, the bank misrepresented the quality of the loans, failing to disclose that it hadn't followed appropriate underwriting standards and loans were made based on inflated appraisals, investors said in a complaint. The bank and the underwriters deny wrongdoing, according to the proposed accord, which is subject to a judge's approval.

On July 26, 2011, the Court issued an order preliminarily approving the settlement pending notice and scheduling hearing.

INDUSTRY CLASSIFICATION:
SIC Code: 6189
Sector: Financial
Industry: Regional Banks

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

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Boilermaker-Blacksmith National Pension Trust, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.

COURT: S.D. New York	DOCKET NUMBER: 09-CV-00833
JUDGE NAME: Hon. Leonard B. Sand
DATE FILED: 01/29/2009	SOURCE:
CLASS PERIOD START: 07/29/2005	CLASS PERIOD END: 01/29/2009
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Schoengold Sporn Laitman & Lometti PC 19 Fulton Street, Suite 406, New York, NY, 10038 (voice) 212.964.0046, (fax) 212.267-8137, shareholderrelations@spornlaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Complaint For Violation Of Sections 11, 12 And 15 Of The Securities Act Of 1933
Type: Complaint		Date on the document: 01/29/2009
Notice Of Voluntary Dismissal
Type: Notice		Date on the document: 03/30/2009
Notice Of Voluntary Dismissal
Type: Other		Date on the document: 04/06/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/04/2009

REFERENCE COMPLAINT

In Re: Wells Fargo Mortgage Backed Certificates Litigation

COURT: N.D. California	DOCKET NUMBER: 09-CV-01376
JUDGE NAME:
DATE FILED: 05/28/2010	SOURCE:
CLASS PERIOD START: 07/29/2005	CLASS PERIOD END: 01/29/2009
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Litowitz Berger & Grossmann LLP (San Diego) 12481 High Bluff Drive, Suite 300, San Diego, CA, 92130 (voice) 858.793.0070, (fax) 858.793.0323, blbg@blbglaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Order Re: Motions To Change Venue, Appointment As Lead Plaintiff, Selection Of Lead Counsel, And Consolidation
Type: Order of Consolidation		Date on the document: 07/16/2009
Consolidated Class Action Complaint for Violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933
Type: Complaint		Date on the document: 08/31/2009
Order Granting In Part And Denying In Part Defendants' Motions To Dismiss
Type: Order		Date on the document: 04/22/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/26/2010
Amended Consolidated Class Action Complaint For Violations Of §§ 11, 12(a)(2) And 15 Of The Securities Act Of 1933
Type: Complaint		Date on the document: 05/28/2010
Declaration Of Matthew P. Jubenville In Support Of Plaintiffs’ Opposition To: (1) The Wells Fargo Defendants’ And Individual Defendants’ Motion To Dismiss The Amended Complaint; And (2) The Underwriter Defendants’ Motion To Dismiss The Amended Complaint
Type: Declaration		Date on the document: 07/16/2010
Declaration Of Service
Type: Declaration		Date on the document: 07/16/2010
Plaintiffs’ Opposition To: (1) The Wells Fargo Defendants’ And Individual Defendants’ Motion To Dismiss The Amended Complaint; And (2) The Underwriter Defendants’ Motion To Dismiss The Amended Complaint
Type: Other		Date on the document: 07/16/2010
Order Granting In Part And Denying In Part Wells Fargo Defendants' Motion To Dismiss
Type: Order		Date on the document: 10/05/2010
Tentative Order Granting Underwriter Defendants' Motion To Dismiss
Type: Order		Date on the document: 10/05/2010
Notice Of Appeal To The United States Court Of Appeals For The Ninth Circuit By The General Retirement System Of The City Of Detroit
Type: Notice of Appeal		Date on the document: 11/17/2010
Declaration of David R. Stickney In Support of Lead Plaintiffs' Motion for Class Certification
Type: Declaration		Date on the document: 02/11/2011
Notice of Motion and Motion for Class Certification; Memorandum of Points and Authorities in Support Thereof
Type: Motion		Date on the document: 02/11/2011
Declaration Of Service
Type: Declaration		Date on the document: 05/26/2011
Declaration of Timothy A. DeLange In Support Of Lead Plaintiffs' Opposition To The Wells Fargo Defendants' And Individual Defendants' Motion For Judgment On The Pleadings And Partial Summary Judgment
Type: Declaration		Date on the document: 05/26/2011
Lead Plaintiffs' Opposition To The Wells Fargo Defendants' And Individual Defendants' Motion For Judgment On The Pleadings And Partial Summary Judgment
Type: Summary Judgment		Date on the document: 05/26/2011
Declaration Of Service
Type: Declaration		Date on the document: 06/02/2011
Reply In Further Support Of Lead Plaintiffs' Motion For Class Certification
Type: Motion		Date on the document: 06/02/2011
Declaration Of Timothy A. DeLange In Further Support Of Lead Plaintiffs' Motion For Class Certification
Type: Declaration		Date on the document: 06/14/2011
Declaration Of Timothy A. DeLange In Support Of Lead Plaintiffs' Opposition To The Wells Fargo Defendants' And Individual Defendants' Motion For Judgment On The Pleadings And Partial Summary Judgment
Type: Declaration		Date on the document: 06/14/2011
Lead Plaintiffs' Opposition To The Wells Fargo Defendants' And Individual Defendants' Motion For Judgment On The Pleadings And Partial Summary Judgment
Type: Motion		Date on the document: 06/14/2011
Lead Plaintiffs' Opposition To The Wells Fargo Defendants' And Individual Defendants' Motion For Judgment On The Pleadings And Partial Summary Judgment
Type: Motion		Date on the document: 06/14/2011
Reply In Further Support Of Lead Plaintiffs' Motion For Class Certification
Type: Other		Date on the document: 06/14/2011
Declaration Of Service
Type: Declaration		Date on the document: 07/06/2011
Lead Plaintiffs' Notice Of Motion And Unopposed Motion For Preliminary Approval Of Class Action Settlement; Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 07/06/2011
[Proposed] Order Preliminarily Approving Settlement, Providing For Notice And Scheduling Hearing
Type: Order		Date on the document: 07/06/2011
Stipulation Of Settlement
Type: Other		Date on the document: 07/06/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 07/08/2011
Lead Plaintiff's Notice Of Filing Of Revised Proposed Preliminary Approval Order And Exhibits Thereto
Type: Notice		Date on the document: 07/25/2011
Order Preliminarily Approving Settlement, Providing For Notice And Scheduling Hearing
Type: Order		Date on the document: 07/26/2011
Declaration Of David R. Stickney In Support Of Motion For Final Approval Of Settlement And Plan Of Allocation, And Motion For Approval Of Attorneys’ Fees And Expenses
Type: Other		Date on the document: 09/22/2011
Lead Counsel’s Notice Of Motion And Motion For Attorneys’ Fees And Reimbursement Of Litigation Expenses; Memorandum Of Points And Authorities In Support Thereof
Type: Other		Date on the document: 09/22/2011
Lead Plaintiffs’ Notice Of Motion And Motion For Final Approval Of Class Action Settlement; Memorandum Of Points And Authorities In Support Thereof
Type: Other		Date on the document: 09/22/2011
Declaration Of Service
Type: Other		Date on the document: 10/20/2011
Lead Plaintiffs’ Reply In Further Support Of Motion For Final Approval Of Class Action Settlement
Type: Other		Date on the document: 10/20/2011
[Proposed] Final Judgment And Order Of Dismissal With Prejudice
Type: Other		Date on the document: 10/20/2011
[Proposed] Order Approving Plan Of Allocation
Type: Other		Date on the document: 10/20/2011
[Proposed] Order Awarding Attorneys’ Fees And Reimbursement Of Litigation Expenses
Type: Other		Date on the document: 10/20/2011
Supplemental Declaration Of Jennifer M. Keough Re Notice Dissemination And Publication
Type: Other		Date on the document: 10/20/2011
Supplemental Declaration Of David R. Stickney Regarding Plaintiffs’ Counsel’s Lodestar
Type: Declaration		Date on the document: 11/02/2011
Declaration of Service
Type: Declaration		Date on the document: 11/03/2011
[Proposed] Order Authorizing Publication Of Reminders To Submit Claim Forms
Type: Order		Date on the document: 11/03/2011
Supplemental Submission Regarding Plaintiffs’ Counsel’s Lodestar And Publication Of Reminders To Submit Claim Forms
Type: Other		Date on the document: 11/03/2011

OTHER DOCUMENTS
Class Action Complaint For Violation Of The Federal Securities Laws
Case Name and/or Number: General Retirement System Of The City Of Detroit, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Complaint		Date on the document: 03/27/2009
Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial
Case Name and/or Number: General Retirement System of the City of Detroit, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Complaint		Date on the document: 03/27/2009
Certificate Of David A. Thorpe Pursuant To Local Rule 3-7(D)
Case Name and/or Number: New Orleans Employees Retirement System, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Other		Date on the document: 04/13/2009
Certificate Of Timothy A. Delange Pursuant To Local Rule 3-7(D)
Case Name and/or Number: New Orleans Employees Retirement System, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Other		Date on the document: 04/13/2009
Class Action Complaint For Violation Of §§ 11, 12(A)(2) And 15 Of The Securities Act Of 1933
Case Name and/or Number: New Orleans Employees Retirement System, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Complaint		Date on the document: 04/13/2009
New Orleans Employees' Retirement System's Certification Of Interested Entities Or Persons Pursuant To Civil Local Rule 3-16
Case Name and/or Number: New Orleans Employees Retirement System, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Other		Date on the document: 04/13/2009
Certificate Of David R. Stickney Pursuant To Local Rule 3-7(D)
Case Name and/or Number: New Orleans Employees' Retirement System et al. V. Wells Fargo Asset Securities Corporation et al.
Type: Other		Date on the document: 04/23/2009
Declaration Of David R. Stickney In Support Of The Motion Of The Public Funds For Appointment As Lead Plaintiffs And Approval Of Their Selection Of Lead Counsel
Case Name and/or Number: General Retirement System Of The City Of Detroit et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Declaration		Date on the document: 06/01/2009
Joint Declaration Of Jerome Davis, Osey McGee, Jr., Joe T. San Agustin, And Robert L. Gaumer In Support Of The Public Funds’ Motion For Appointment As Lead Plaintiffs
Case Name and/or Number: General Retirement System Of The City Of Detroit, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Declaration		Date on the document: 06/01/2009
Notice Of Motion, Motion, And Memorandum Of Law In Support Of The Motion Of The Public Funds For Appointment As Lead Plaintiffs, Approval Of Their Selection Of Lead Counsel, And Consolidation Of Related Actions.
Case Name and/or Number: General Retirement System Of The City Of Detroit, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Notice		Date on the document: 06/01/2009
Memorandum Of Law (1) In Further Support Of The Motion Of The Public Funds Group For Appointment As Lead Plaintiffs, Approval Of Its Selection Of Lead Counsel, And Consolidation Of Related Actions; And (2) In Opposition To The Competing Motion For Appointment As Lead Plaintiff
Case Name and/or Number: General Retirement System Of The City Of Detroit, et al. v. Wells Fargo Mortgage-Backed Securities 2006-AR1 Trust,, et al.
Type: Memorandum		Date on the document: 06/26/2009
U.S. District Court Civil Docket
Case Name and/or Number: New Orleans Employees' Retirement System , et al. v. Wells Fargo Asset Securities Corporation, et al.
Type: Docket		Date on the document: 07/16/2009

WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.

Go to Search page | Go to Case Index page | Back to Top

�