San Diego, CA -- (SBWIRE) -- 11/12/2020 -- An investor, who purchased 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 October 13, 2017 and October 13, 2020.

Investors who purchased shares of Wells Fargo & Company (NYSE: WFC) have certain options and for certain investors are short and strict deadlines running. Deadline: December 28, 2020. NYSE: WFC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Since 2009, Wells Fargo & Company has dramatically ramped up its commercial lending activities and has become a leading market participant in the securitization of commercial loans, originating and distributing as well as investing in billions of dollars' worth of collateralized loan obligations ("CLOs") and commercial mortgage backed securities ("CMBS") backed by corporate debt.

On April 14, 2020, in connection with the release of its first quarter 2020 financial results, Wells Fargo & Company revealed it was taking a massive $4 billion provision expense to account for expected credit delinquencies.

On July 14, 2020, Wells Fargo & Company released its second quarter 2020 results, which disclosed that the Company had suffered a $2.4 billion loss during the quarter, or ($0.66) per share, and was taking a $9.5 billion provision expense to account for expected credit delinquencies.

Then, on October 14, 2020, Wells Fargo & Company released its third quarter 2020 results, with the Company announcing that it had recognized another provision expense of $769 million and that non-accrual loans had increased $2.5 billion, or 45%, to $8 billion during the quarter.

The plaintiff claims that between October 13, 2017 and October 13, 2020, the defendants reassured investors that Wells Fargo's commercial credit portfolios were of exceptional credit quality and the product of robust, industry-leading underwriting and due diligence policies and procedures, that in truth, however, Wells Fargo fueled its rapid commercial loan growth by lending to businesses that posed a heightened risk of default, that Wells Fargo systematically concealed these credit risks by artificially inflating the incomes generated by borrowing businesses, relaxing or failing to follow applicable underwriting procedures, and circumventing applicable risk controls, and that Wells Fargo exacerbated the threat posed by its defective commercial debt by packaging the loans into CLOs and CMBS and widely distributing these securitized products throughout the financial system.

Those who purchased shares of Wells Fargo & Company (NYSE: WFC) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.