Wells Fargo & Co. (WFC)

WFC Investigation 

Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Wells Fargo & Company ("Wells Fargo" or "the Company") (NYSE: WFC). The investigation concerns whether Wells Fargo and certain of its officers and/or directors have violated federal securities laws.

 

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.

 

If you are aware of any facts relating to this investigation, or purchased Wells Fargo shares, you can also contact Peretz Bronstein of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484. 

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.

© 2020 Bronstein, Gewirtz & Grossman, LLC

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BG&G is not affiliated to any of these companies. All respective trademarks are owned by the respective companies.