November 12, 2020 - The case was voluntarily dismissed.

June 4, 2020 - An investor in shares of Wells Fargo & Company (NYSE: WFC) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Wells Fargo & Company in connection with certain allegedly false and misleading statements made between April 5, 2020, and May 5, 2020.

San Francisco, CA based Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally.

On April 5, 2020, Wells Fargo & Company 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 & Company 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 & Company 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 & Company, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP. Finally, on May 5, 2020, Wells Fargo & Company 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.

According to the complaint the plaintiff alleges on behalf of purchasers of Wells Fargo & Company (NYSE: WFC) common shares between April 5, 2020, and May 5, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 5, 2020, and May 5, 2020, the defendants failed to disclose to investors that: (i) 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; (ii) 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 (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.