NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the securities of Wells Fargo & Company (NYSE: WFC) between April 5, 2020 and May 5, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Wells Fargo investors under the federal securities laws.
On April 19, 2020, it was reported that Wells Fargo may have unfairly allocated government-backed loans under the Paycheck Protection Program (“PPP”). On this news, Wells Fargo stock price fell $1.54 per share over the next two trading days, or over 5%, to close at $26.84 per share on April 21, 2020.
On May 5, 2020, in an SEC filing, Wells Fargo disclosed that it had “received formal and informal inquiries from federal and state governmental agencies regarding its offering of PPP loans.” On this news, Wells Fargo’s stock price fell $1.74 per share over the next two trading days, or over 6%, to close at $25.61 per share on May 6, 2020.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Wells Fargo's business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 3, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to http://www.rosenlegal.com/cases-register-1861.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of Rosen Law Firm toll free at 866-767-3653 or via e-mail at pkim@rosenlegal.com or cases@rosenlegal.com.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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