BENSALEM, Pa.–()–Law Offices of Howard G. Smith announces an investigation on behalf of Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) investors concerning the Company’s possible violations of federal securities laws.

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, Wells Fargo’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, the Company 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, Wells Fargo’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, the Company’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, Wells Fargo’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, the Company 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, Wells Fargo’s stock price fell $1.16, or 5%, to close at $24.25 per share on July 14, 2020.

On October 14, 2020, the Company 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, Wells Fargo’s stock price fell $1.49, or 6%, to close at $23.25 per share on October 14, 2020.

If you purchased Wells Fargo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Source link

Author: admin