MINNEAPOLIS, March 8, 2021 /PRNewswire/ -- The following
is being released by the Securities and Exchange Commission.
On February 21, 2020, the
Securities and Exchange Commission (the "Commission") issued an
Order Instituting Cease-and-Desist Proceedings Pursuant to Section
21C of the Securities Exchange Act of 1934, Making Findings, and
Imposing a Cease-and-Desist Order (the "Order") against Wells Fargo
& Company ("Wells Fargo" or the "Respondent"). In the Order,
the Commission found that from 2012 through 2016, the Respondent
violated the federal securities laws by misleading investors
regarding the success of the core business strategy of the
Community Bank operating segment, its largest business unit. At all
relevant times, Wells Fargo was a publicly traded financial
services corporation with common stock registered under Section
12(b) of the Securities Exchange Act of 1934 ("Exchange Act") and
quoted on the New York Stock Exchange (Ticker: WFC). According to
the Order, Wells Fargo, among other things, failed to disclose to
investors that the Community Bank's sales model had caused
widespread unlawful and unethical sales practices misconduct that
was at odds with its investor disclosures regarding needs-based
selling, and that the publicly reported cross-sell metric included
significant numbers of unused or unauthorized accounts. The
Commission found that Wells Fargo violated Section 10(b) of the
Exchange Act and Rule 10b-5
thereunder.
Pursuant to the Order, the Respondent paid a $500 million civil money penalty to the
Commission. In the Order, the Commission established a Fair Fund
pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002 so the
civil penalties paid by the Respondent can be distributed to harmed
investors (the "Wells Fargo Fair Fund").
On March 10, 2020, the Commission
appointed Miller Kaplan Arase LLP as Tax Administrator for the
Wells Fargo Fair Fund to handle its tax obligations. On
May 21, 2020, the Commission
appointed the Fund Administrator to assist in developing and
executing the Plan. On January 11,
2021, the Commission approved the Plan.
Who is Potentially Eligible for Compensation: To be
eligible for a payment from the Wells Fargo Fair Fund, class
members must satisfy certain eligibility criteria that are
described in detail in the Plan. Those criteria include the
following: 1) class member must have purchased or acquired Wells
Fargo common stock, traded on the New York Stock Exchange under the
trading symbol WFC, during the Recovery Period; 2) the approved
transactions must calculate to an Eligible Loss Amount as
calculated under the Plan and the Distribution Payment must equal
or exceed $10.00; and 3) class member
is not an Excluded Party as defined in the Plan.
How to File a Claim: Class members can complete and
submit an online Claim Form or obtain a physical Claim Form by
visiting the Wells Fargo Fair Fund's website at
www.WellsFargoFairFund.com. If class members choose to submit their
Claim Form online, they must submit it on or before 11:59 p.m. Eastern Standard Time on June 25, 2021.
To submit a Claim Form by mail, class members must submit it to
the Fund Administrator at the following address by first class
mail, postmarked (or if not sent by U.S. Mail, received) no
later than June 25, 2021:
Wells Fargo Fair Fund
c/o Rust Consulting, Inc.
Fund Administrator - 6989
P.O. Box 1369
Minneapolis, MN 55440-1369
How to Obtain Relevant Documents or Additional
Information: Copies of the Plan, the Plan Notice, and the Claim
Form are available at www.WellsFargoFairFund.com. Class member may
also obtain a copy by calling 1 (855) 225-1888 or by emailing the
Fund Administrator at info@WellsFargoFairFund.com. Information on
the Wells Fargo Fair Fund is also available on the Commission's
public website at
https://www.sec.gov/divisions/enforce/claims/wells-fargo-company.htm.
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content:http://www.prnewswire.com/news-releases/those-who-purchased-or-acquired-wells-fargo-common-stock-traded-on-the-new-york-stock-exchange-under-the-trading-symbol-wfc-the-security-during-the-recovery-period-november-18-2012-through-september-14-2016-inclusive-ma-301241284.html
SOURCE U.S. Securities and Exchange Commission