NEW YORK, May 21, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Wells Fargo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 5, 2020, Wells Fargo 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 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 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, reports emerged that Wells Fargo may have unfairly allocated government-backed loans under the PPP. Following this news, Wells Fargo’s stock price fell more than 5% over two trading days to close at $26.84 per share on April 21, 2020. Finally, on May 5, 2020, Wells Fargo 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.” Following this news, Wells Fargo’s stock price fell by more than 6% over two trading days to close at $25.61 per share on May 6, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
