Wells Fargo Securities Class Action Settlement Reaches $1 Billion

The Wells Fargo securities class action settlement is a significant milestone in the history of investor lawsuits. This massive settlement is a result of a long and complex legal battle.

A total of $1 billion will be paid out to investors who were affected by Wells Fargo's alleged misdeeds. This amount is a testament to the power of collective action and the importance of holding corporations accountable for their actions.

Investors who were impacted by Wells Fargo's alleged misconduct will receive a share of the settlement funds. The exact amount each investor will receive will depend on the specific circumstances of their investment.

The litigation process in the Wells Fargo securities class action case has been ongoing since 2018. The Construction Laborers Pension Trust for Southern California was appointed as lead plaintiff in June 2018.

The court denied in part Wells Fargo's motion to dismiss the case in January 2020, allowing the case to move forward. This decision was a significant milestone in the litigation process.

The case is now scheduled for trial in San Francisco in February 2023, a development that brings the case one step closer to resolution.

The plaintiffs in a securities class action lawsuit against Wells Fargo have reached a significant settlement. Lead plaintiffs have settled the action for $1 billion in cash, resolving all claims in the lawsuit.

This is a substantial amount of money, and it's a testament to the dedication of the lead plaintiffs and their counsel. The settlement was approved by the court on September 8, 2023.

If you're a member of the settlement class, you may be eligible for a payment from the settlement. To determine your eligibility, you can review the settlement class definition, which includes all persons or entities who purchased or otherwise acquired Wells Fargo common stock during the class period (February 2, 2018 through March 12, 2020).

Certain individuals and entities are excluded from the settlement class, as outlined in the notice and claim form. You can find the notice and claim form in the case documents list on the right of this page or on the case website, WellsFargoSecuritiesClassAction.com.

Here are the key dates related to the settlement:

The appellate court's decision in Kafka v. Wells Fargo Sec., LLC, was a significant one, affirming the lower court's dismissal of the case.

A negligence claim requires a plaintiff to show that the defendant owed them a duty, but the Kafkas failed to adequately allege this in their case.

The court ruled that if Wells Fargo had a duty to avoid financial harm to all downstream investors, it would impose an immense burden on the company.

The Kafkas' claim for tortious interference with contract was also dismissed because they didn't claim that Wells Fargo desired LJM to breach its contract with them.

Wells Fargo isn't liable for aiding and abetting a breach of fiduciary duty by LJM because the investors didn't allege such a breach.

The investors' contract-based claims fail because the provisions in the agreements between LJM and Wells Fargo leave no doubt that the parties intended to preclude any benefit from flowing to a third party.

Wolf Haldenstein Adler Freeman & Herz LLP represented the investors, while Mayer Brown LLP and Shook, Hardy & Bacon, LLP represented Wells Fargo.

The case against Wells Fargo was certified as a class action in August 2022 by the Honorable James Donato of the U.S. District Court for the Northern District of California.

Construction Laborers Pension Trust for Southern California is the lead plaintiff in the case, represented by Robbins Geller Rudman & Dowd LLP. This law firm has a reputation for achieving significant recoveries for investors in securities fraud cases.

Wells Fargo executives were aware of the improper charges as early as 2016, but didn't reveal the issue to investors until it was exposed by The New York Times in 2017. This delayed disclosure led to artificially inflated stock prices.

The company's stock price fell significantly after the disclosures were made, damaging investors. Approximately 274,000 customers were put into delinquency and almost 25,000 vehicles were repossessed due to the unneeded insurance charges.

The Construction Laborers Pension Trust for Southern California was appointed as lead plaintiff in June 2018. The case has been moving forward since then, with the court denying Wells Fargo's motion to dismiss in part in January 2020.

The case is scheduled for trial in San Francisco in February 2023. Robbins Geller attorneys have obtained this result for investors, paving the way for a potential trial.

This securities fraud class action lawsuit was brought against Wells Fargo and its executive officers and directors. They were accused of making false statements about the company's performance.

The case covered a specific time period, from February 2, 2018 to March 12, 2020. This is a significant time frame that likely had a major impact on the company's stock price and investor decisions.

The lawsuit alleged claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. These sections are specific laws that govern the behavior of publicly traded companies and their executives.