Wells Fargo is a diversified financial services company providing banking, insurance, investments, mortgage, leasing, credit cards, and consumer finance. The Company operates through physical stores, the internet, and other distribution channels worldwide.
According to the law firm press release, on September 8, 2016, the U.S. Consumer Financial Protection Bureau published a Consent Order with a Stipulation to its entry signed by the Executive Vice President of Wells Fargo Bank, detailing fraudulent practices at the Company, which were centered on a corporate culture intent on growing its cross-selling opportunities and unlawfully and without its customers' consent opening millions of unauthorized deposit and credit card accounts, and imposing a fine of more than $185 million.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Wells Fargo had charged more than 800,000 customers for unneeded auto insurance, the expense of which pushed approximately 274,000 Wells Fargo customers into delinquency and resulted in almost 25,000 vehicle repossessions; (ii) the foregoing conduct, when it came to light, would foreseeably subject Wells Fargo to heightened regulatory scrutiny and/or enforcement actions; and (iii) as a result, Wells Fargo's public statements were materially false and misleading at all relevant times.
The Complaint was re-filed on February 16, 2018, due to a filing error in the initial Complaint.
On June 20, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel and transferring the case to the Northern District of California under Docket 18-CV-03948. Lead Plaintiff filed a consolidated Complaint on August 31. Defendants filed a Motion to Dismiss the consolidated Complaint on November 2. On January 10, 2020, the Court issued an Order partially granting Defendant's Motion to Dismiss.