SAN FRANCISCO (Legal Newsline) – A new securities class action targets Wells Fargo over its legal woes.
The Steamfitters Local 449 filed suit in San Francisco federal court on July 13 through lawyers at Bleichmar Fonti & Auld. It says an investigation revealed that executives knew of many of the issues underlying the scandal as far back as 2002.
The class period begins when the Federal Reserve announced an enforcement action and settlement over the Board of Directors’ oversight activities. Two months later, in April 2018, settlements with two other federal agencies addressed consumer abuses related to mortgage fees and vehicle collateral protection insurance.
The lawsuit follows a March 4 release of an investigation by the U.S. House Financial Services Committee.
“Supported by numerous detailed factual findings, the Financial Services Committee concluded that Wells Fargo ‘continues to struggle to implement effective risk management and remediation programs,’ the Company’s ‘board and management repeatedly have failed to demonstrate that the Bank can establish compliance management infrastructure capable of preventing abuses,’ and ‘Wells Fargo’s leadership has been unable to change the Bank’s culture,’” the lawsuit says.
“Significantly, the Report also concluded that Wells Fargo was not in compliance with the Consent Orders.”
The company’s stock dropped from $41.40 per share, when the report was released, to $27.20 a week later.