NEW ORLEANS–(BUSINESS WIRE)–Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until December 29, 2020 to file lead plaintiff applications in a securities class action lawsuit against Wells Fargo & Company (NYSE: WFC), if they purchased the Company’s shares between October 13, 2017 and October 13, 2020, inclusive (the “Class Period”). This action is pending in the United States District Court for the Northern District of California.
What You May Do
If you purchased shares of Wells Fargo and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (email@example.com), or visit https://www.ksfcounsel.com/cases/nyse-wfc/ to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by December 29, 2020.
About the Lawsuit
Wells Fargo and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that: (i) while issuing billions of dollars’ worth of commercial loans, the Company consistently failed to follow appropriate underwriting standards and due diligence guidelines, including inflating the net income and future expected cash flows of its commercial clients to justify issuing excessive loan amounts; (ii) a materially higher proportion of its commercial loans were to customers of poor credit quality and/or at a substantially higher risk of default than disclosed to investors; (iii) the Company had failed to timely write down commercial loans, CLOs and CMBS on its books that had suffered impairments; (iv) the Company had materially understated the reserves needed for expected credit losses in its commercial portfolios; (v) the Company had systematically misrepresented the credit quality and likelihood of default of the loans it packaged and securitized into CLOs and CMBS; (vi) the CLO and CMBS-related loans issued and investment securities held by the Company were of lower credit quality and worth far less than represented to investors; (vii) as a result of the above, the Company’s statements regarding the credit quality of its commercial loans, its underwriting and due diligence practices, and the value of its CLO and CMBS books were materially false and misleading; and (vii) as a result of the above, the Company was exposed to severe undisclosed risks of financial, reputational and legal harm, in particular in the event of significant and sustained stress in the commercial credit markets.
The case is Mullen v. Wells Fargo & Company, 20-cv-7674.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking to recover investment losses due to corporate fraud and malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.