NEW YORK, Sept. 27, 2016 /PRNewswire/ -- Bernstein Liebhard
LLP today announced that a securities class action has been filed
in the United States District Court for the Northern District of
California on behalf of a class
(the "Class") consisting of all persons or entities who purchased
the common stock of Wells Fargo & Company ("Wells Fargo"
or the "Company") (NYSE: WFC) during the period between
February 26, 2014 and September 15, 2016, inclusive (the "Class
Period"). The complaint alleges that Defendants violated
Sections 10(b) and 20(a) of the Securities Exchange Act of
1934.
Wells Fargo is a diversified
financial services company that provides retail, commercial and
corporate banking services, principally in the United States.
Wells Fargo has been the envy of the banking industry for its
ability to sell different products to the same customer. During the
Class Period, this "cross-selling strategy" was an important facet
of Wells Fargo's business and growth.
Plaintiff alleges that Defendants made false and misleading
statements and/or failed to disclose that Wells Fargo's
cross-selling efforts to retail customers were not designed to meet
customers' financial needs or drive customer satisfaction.
Rather, the Company's cross-selling strategy was allegedly
purposefully created to generate fee income for Wells Fargo and
compensation rewards for Wells Fargo employees. Wells Fargo
also failed to disclose that an ongoing internal investigation had
determined by the beginning of the Class Period that employees in
the Company's Community Banking segment had engaged in a wide
ranging scheme to inflate the Company's financial performance
figures by opening millions of unauthorized deposit and credit card
accounts, ultimately resulting in more than 5,000 employee
terminations.
On September 8, 2016, it was
revealed that Wells Fargo had been fined $185 million, including $100 million by the U.S. Consumer Financial
Protection Bureau (the "CFPB"), which published a Consent Order
detailing the Company's deceptive practices. In the next few
days, several media outlets issued articles detailing the
scandal. The complaint alleges that as a result of these
revelations, between September 8,
2016 and September 16, 2016,
the Company's stock price declined 9%, from a close of $49.90 per share on September 8, 2016 to a close of $45.43 per share on September 16, 2016, as information about
Defendants' conduct and its impact on Wells Fargo's operations
reached the market.
Plaintiff seeks to recover damages on behalf of all Class
members who invested in Wells Fargo common stock during the Class
Period. If you invested in Wells Fargo common stock as
described above, and lost money on the transactions, you may wish
to join in this action to serve as lead plaintiff. In order
to do so, you must meet certain requirements set forth in the
applicable law and file appropriate papers no later than
November 25, 2016.
A "lead plaintiff" is a representative party that acts on behalf
of other class members in directing the litigation. In order
to be appointed lead plaintiff, the court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members
may together serve as lead plaintiff. Your ability to share
in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. You may retain Bernstein
Liebhard LLP, or other counsel of your choice, to serve as your
counsel in this action.
If you are interested in discussing your rights as a Wells Fargo
investor and/or have information relating to the matter, please
contact Joseph R. Seidman, Jr. at
(877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities,
consumer and shareholder rights cases and recovered over
$3.5 billion for its clients.
The Firm has been named to the National Law Journal's "Plaintiffs'
Hot List" thirteen times.
You can obtain a copy of the complaint from the clerk of the
court for the United States District Court for the Northern
District of California.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2016 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http//www.bernlieb.com
(212) 779-1414
seidman@bernlieb.com
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