LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your Wells Fargo investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/wells-fargo-and-company/.You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
On April 14, 2020, Wells Fargo announced its first quarter 2020 financial results in a press release. Therein, the Company announced a $4 billion provision expense to account for expected credit delinquencies, including $940 million in net charge-offs on loans and debt securities and a $3.1 billion reserve build.
On this news, the Company’s stock price fell $4.54, or 14%, over three consecutive trading sessions to close at $26.89 per share on April 16, 2020.
On May 5, 2020, Wells Fargo filed its quarterly report with the SEC for first quarter 2020, in which it stated that Wells Fargo’s collateralized loan obligations (“CLOs”) investments fell 9% and that the Company suffered $1.7 billion in unrealized losses on its CLO investments during the quarter.
On this news, the Company’s stock price fell $1.74, or 6%, over two consecutive trading sessions to close at $25.61 per share on May 6, 2020.
On June 10, 2020, Wells Fargo’s Chief Financial Officer, John Shrewsberry, presented at the Morgan Stanley Virtual US Financials Conference, during which he stated that the second quarter reserve build would be even “bigger than the first quarter” due to continued deterioration in the Company’s credit portfolio.
On this news, the Company’s stock price fell $5.84, or 18%, over two consecutive trading sessions to close at $26.79 per share on June 11, 2020.
On July 14, 2020, Wells Fargo announced its second quarter 2020 financial results in a press release, disclosing a $9.5 billion provision expense to account for expected credit delinquencies.
On this news, the Company’s stock price fell $1.16, or 5%, to close at $24.25 per share on July 14, 2020.
On October 14, 2020, Wells Fargo announced a $769 million provision expense for third quarter 2020, but the Company’s CFO stated that further deterioration of the credit portfolio had been forestalled due to short-term customer accommodations provided since the start of the pandemic.
On this news, the Company’s stock price fell $1.49, or 6%, to close at $23.25 per share on October 14, 2020.
Whistleblower Notice: Persons with non-public information regarding Wells Fargo should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email email@example.com.
Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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