Investors with losses of $1,000,000 or more are encouraged to contact the firm
NEW YORK, June 19, 2020 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Wells Fargo & Company ("Wells Fargo" or the "Company") (WFC) investors that acquired securities between April 5, 2020, and May 5, 2020. Eligible Wells Fargo investors have until August 3, 2020 to request that the Court appoint you as lead plaintiff.
On April 5, 2020, Wells Fargo announced that it had received strong interest in the Paycheck Protection Program ("PPP"), a program under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), and was targeting to distribute a total of $10 billion to small business customers under the requirements of the PPP.
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, a change which would allow Wells Fargo to make additional small business loans as part of the PPP.
That same day, Wells Fargo issued a press release stating, in relevant part, that, "beginning immediately, in response to the actions by the Federal Reserve, [Wells Fargo] will expand its participation in the [PPP] and offer loans to a broader set of its small business and nonprofit customers subject to the terms of the program."
Then, on April 19, 2020, after at least one lawsuit was filed against the Company, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP. For example, USA Today reported that "[t]he lawsuit filed on behalf of small business owners on Sunday alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government's small business agency has said that PPP loan applications would be processed on a first-come, first-served basis." According to the lawsuit, "[t]he move by Wells Fargo meant that the bank would receive millions more dollars in processing fees," and, "[m]aking matters worse, Wells Fargo concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money."
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Wells Fargo's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Wells Fargo planned to, and did, improperly allocate government-backed loans under the PPP, and/or had inadequate controls in place to prevent such misallocation; (ii) the foregoing foreseeably increased the Company's litigation risk with respect to PPP allocation, as well as increased regulatory scrutiny and/or potential enforcement actions; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
Please visit our website to review more information and submit your transaction information. If you suffered a loss you have until August 3, 2020 to request that the Court appoint you as lead plaintiff.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.