NEW YORK--(BUSINESS WIRE)--Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Wells Fargo & Company ("Wells Fargo" or "the Company") (NYSE: WFC) on behalf of shareholders who purchased Wells Fargo securities between April 5, 2020, and May 5, 2020, inclusive (the ''Class Period''). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/wfc.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) 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 (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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, 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 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, [Wells Fargo] 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.” Then, on April 20, 2020, after at least two lawsuits were filed against Wells Fargo, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP. Following this news, Wells Fargo’s stock price fell more than 5% over two trading days to close at $26.84 per share on April 21, 2020. Finally, 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 stock price fell by more than 6% over two trading days to close at $25.61 per share on May 6, 2020.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/wfc or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Wells Fargo you have until August 3, 2020 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.