Wells Fargo & Company is a financial services and bank holding company headquartered in San Francisco, California.

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.