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Investor Alert: Kaplan Fox Announces Investigation of Wells Fargo & Company

NEW YORK, May 07, 2020 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Wells Fargo & Company (“Wells Fargo” or the “Company”) (WFC). 

On Sunday April 5, 2020, Wells Fargo announced it had received strong interest in the Paycheck Protection Program (“PPP”), a program under the Coronavirus Aid, Relief, and Economic Security Act. and was targeting to distribute a total of $10 billion to small business customers under the requirements of the PPP.  On April 6, 2020, Wells Fargo’s shares increased by $2.40 per share, over 9%, to close at $28.63 per share.

On April 8, 2020, the Federal Reserve announced that it would allow Wells Fargo to exceed the asset cap that it had imposed on Wells Fargo in 2018 after revelations that the Company had opened millions of accounts in customers’ names without their permission.  The change would allow Wells Fargo to make additional small business loans as part of the PPP.  On April 8, Wells Fargo also issued a press release stating that “beginning immediately, in response to the actions by the Federal Reserve, it will expand its participation in the Paycheck Protection Program and offer loans to a broader set of its small business and nonprofit customers subject to the terms of the program.”  On April 8, 2020, Wells Fargo’s shares increased by $1.51 per share, over 5%, to close at $30.28 per share.

On April 20, 2020, based on the filing of at least two lawsuits against Wells Fargo, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP.  Following this news, Wells Fargo’s shares fell more than 5% over two trading days to close at $26.84 per share on April 21, 2020.

Then, on May 5, 2020, Wells Fargo disclosed in an SEC filing that “it has . . . received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans.”  Following this news, Wells Fargo’s shares fell by more than 6% over two trading days to close at $25.61 per share on May 6, 2020.

If you purchased Wells Fargo common stock or other Wells Fargo securities and would like to discuss our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003. 

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

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this investigation, your rights, or your interests, please contact:

Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com