{"id":383249,"date":"2020-11-17T11:48:21","date_gmt":"2020-11-17T16:48:21","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=383249"},"modified":"2020-11-17T11:48:21","modified_gmt":"2020-11-17T16:48:21","slug":"the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/","title":{"rendered":"The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors"},"content":{"rendered":"<div class=\"xn-newslines\">\n<h2 class=\"xn-hedline\">Shareholders with $50,000 losses or more are encouraged to contact the firm<\/h2>\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">LOS ANGELES<\/span>, <span class=\"xn-chron\">Nov. 17, 2020<\/span> \/PRNewswire\/ &#8212; <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2982586-1&amp;h=1247056285&amp;u=https%3A%2F%2Fwww.frankcruzlaw.com%2F&amp;a=The+Law+Offices+of+Frank+R.+Cruz\" rel=\"nofollow noopener noreferrer\">The Law Offices of <span class=\"xn-person\">Frank R. Cruz<\/span><\/a> announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Wells Fargo &amp; Company (&#8220;Wells Fargo&#8221; or the &#8220;Company&#8221;) (NYSE: WFC) securities between <b><span class=\"xn-chron\">October 13, 2017<\/span> and <span class=\"xn-chron\">October 13, 2020<\/span><\/b>, inclusive (the &#8220;Class Period&#8221;). Wells <span class=\"xn-location\">Fargo<\/span> investors have until <b><span class=\"xn-chron\">December 29, 2020<\/span><\/b> to file a lead plaintiff motion.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder1\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/1221557\/The_Law_Offices_of_Frank_R_Cruz_Logo.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/1221557\/The_Law_Offices_of_Frank_R_Cruz_Logo.jpg\" title=\"(PRNewsfoto\/The Law Offices of Frank R. Cru)\" alt=\"(PRNewsfoto\/The Law Offices of Frank R. Cru)\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p>If you are a shareholder who suffered a loss, click <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2982586-1&amp;h=505341877&amp;u=https%3A%2F%2Fwww.frankcruzlaw.com%2Fcases%2Fwells-fargo-company%2F&amp;a=here\" rel=\"nofollow noopener noreferrer\">here<\/a> to participate.<\/p>\n<p>On <span class=\"xn-chron\">April 14, 2020<\/span>, Wells Fargo announced its first quarter 2020 financial results in a press release. Therein, the Company announced a <span class=\"xn-money\">$4 billion<\/span> provision expense to account for expected credit delinquencies, including <span class=\"xn-money\">$940 million<\/span> in net charge-offs on loans and debt securities and a <span class=\"xn-money\">$3.1 billion<\/span> reserve build.<\/p>\n<p>On this news, the Company&#8217;s stock price fell <span class=\"xn-money\">$4.54<\/span>, or 14%, over three consecutive trading sessions to close at <span class=\"xn-money\">$26.89<\/span> per share on <span class=\"xn-chron\">April 16, 2020<\/span>. <\/p>\n<p>On <span class=\"xn-chron\">May 5, 2020<\/span>, Wells Fargo filed its quarterly report with the SEC for first quarter 2020, in which it stated that Wells Fargo&#8217;s collateralized loan obligations (&#8220;CLOs&#8221;) investments fell 9% and that the Company suffered <span class=\"xn-money\">$1.7 billion<\/span> in unrealized losses on its CLO investments during the quarter. <\/p>\n<p>On this news, the Company&#8217;s stock price fell <span class=\"xn-money\">$1.74<\/span>, or 6%, over two consecutive trading sessions to close at <span class=\"xn-money\">$25.61<\/span> per share on <span class=\"xn-chron\">May 6, 2020<\/span>.<\/p>\n<p>On <span class=\"xn-chron\">June 10, 2020<\/span>, Wells Fargo&#8217;s Chief Financial Officer, <span class=\"xn-person\">John Shrewsberry<\/span>, presented at the Morgan Stanley Virtual US Financials Conference, during which he stated that the second quarter reserve build would be even &#8220;bigger than the first quarter&#8221; due to continued deterioration in the Company&#8217;s credit portfolio. <\/p>\n<p>On this news, the Company&#8217;s stock price fell <span class=\"xn-money\">$5.84<\/span>, or 18%, over two consecutive trading sessions to close at <span class=\"xn-money\">$26.79<\/span> per share on <span class=\"xn-chron\">June 11, 2020<\/span>.<\/p>\n<p>On <span class=\"xn-chron\">July 14, 2020<\/span>, Wells Fargo announced its second quarter 2020 financial results in a press release, disclosing a <span class=\"xn-money\">$9.5 billion<\/span> provision expense to account for expected credit delinquencies. <\/p>\n<p>On this news, the Company&#8217;s stock price fell <span class=\"xn-money\">$1.16<\/span>, or 5%, to close at <span class=\"xn-money\">$24.25<\/span> per share on <span class=\"xn-chron\">July 14, 2020<\/span>.<\/p>\n<p>On <span class=\"xn-chron\">October 14, 2020<\/span>, Wells Fargo announced a <span class=\"xn-money\">$769 million<\/span> provision expense for third quarter 2020, but the Company&#8217;s CFO stated that further deterioration of the credit portfolio had been forestalled due to short-term customer accommodations provided since the start of the pandemic.<\/p>\n<p>On this news, the Company&#8217;s stock price fell <span class=\"xn-money\">$1.49<\/span>, or 6%, to close at <span class=\"xn-money\">$23.25<\/span> per share on <span class=\"xn-chron\">October 14, 2020<\/span>.<\/p>\n<p>The complaint filed alleges that throughout the Class Period, Defendants made materially false and\/or misleading statements, as well as failed to disclose material adverse facts about the Company&#8217;s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) while issuing billions of dollars&#8217; worth of commercial loans, the Company consistently failed to follow appropriate underwriting standards and due diligence guidelines, including inflating the net income and future expected cash flows of its commercial clients to justify issuing excessive loan amounts; (2) a materially higher proportion of its commercial loans were to customers of poor credit quality and\/or at a substantially higher risk of default than disclosed to investors; (3) the Company had failed to timely write down commercial loans, CLOs and CMBS on its books that had suffered impairments; (4) the Company had materially understated the reserves needed for expected credit losses in its commercial portfolios; (5) the Company had systematically misrepresented the credit quality and likelihood of default of the loans it packaged and securitized into CLOs and CMBS; (6) the CLO and CMBS-related loans issued and investment securities held by the Company were of lower credit quality and worth far less than represented to investors; (7) as a result of the above, the Company&#8217;s statements regarding the credit quality of its commercial loans, its underwriting and due diligence practices, and the value of its CLO and CMBS books were materially false and misleading; and (8) as a result of the above, the Company was exposed to severe undisclosed risks of financial, reputational and legal harm, in particular in the event of significant and sustained stress in the commercial credit markets; and (4) as a result, Defendants&#8217; statements about its business, operations, and prospects, were materially false and misleading and\/or lacked a reasonable basis at all relevant times.<\/p>\n<p>Follow us for updates on Twitter: <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2982586-1&amp;h=3086304829&amp;u=https%3A%2F%2Ftwitter.com%2FFRC_LAW&amp;a=twitter.com%2FFRC_LAW\" rel=\"nofollow noopener noreferrer\">twitter.com\/FRC_LAW<\/a>.<\/p>\n<p>If you purchased Wells Fargo securities during the Class Period, you may move the Court no later than <b><span class=\"xn-chron\">December 29, 2020<\/span><\/b>to ask the Court to appoint you as lead plaintiff.\u00a0 To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.\u00a0 If you purchased Wells Fargo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact <span class=\"xn-person\">Frank R. Cruz<\/span>, of The Law Offices of <span class=\"xn-person\">Frank R. Cruz<\/span>, 1999 Avenue of the Stars, Suite 1100, <span class=\"xn-location\">Los Angeles, California<\/span> 90067 at 310-914-5007, by email to <a target=\"_blank\" href=\"mailto:info@frankcruzlaw.com\" rel=\"nofollow noopener noreferrer\">info@frankcruzlaw.com<\/a>, or visit our website at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2982586-1&amp;h=2375646239&amp;u=https%3A%2F%2Fwww.frankcruzlaw.com%2F&amp;a=www.frankcruzlaw.com\" rel=\"nofollow noopener noreferrer\">www.frankcruzlaw.com<\/a>. \u00a0If you inquire by email please include your mailing address, telephone number, and number of shares purchased.<\/p>\n<p>This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder2\"><\/div>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=LA92563&amp;sd=2020-11-17\" \/> View original content to download multimedia:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo--company-wfc-investors-301175073.html\">http:\/\/www.prnewswire.com\/news-releases\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo&#8211;company-wfc-investors-301175073.html<\/a><\/p>\n<p>SOURCE  The Law Offices of <span class=\"xn-person\">Frank R. Cruz<\/span>, <span class=\"xn-location\">Los Angeles<\/span><\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=LA92563&amp;Transmission_Id=202011171145PR_NEWS_USPR_____LA92563&amp;DateId=20201117\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shareholders with $50,000 losses or more are encouraged to contact the firm PR Newswire LOS ANGELES, Nov. 17, 2020 \/PRNewswire\/ &#8212; The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Wells Fargo &amp; Company (&#8220;Wells Fargo&#8221; or the &#8220;Company&#8221;) (NYSE: WFC) securities between October 13, 2017 and October 13, 2020, inclusive (the &#8220;Class Period&#8221;). Wells Fargo investors have until December 29, 2020 to file a lead plaintiff motion. If you are a shareholder who suffered a loss, click here to participate. On April 14, 2020, Wells Fargo announced its first quarter 2020 financial results in a press release. Therein, the Company announced &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-383249","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Shareholders with $50,000 losses or more are encouraged to contact the firm PR Newswire LOS ANGELES, Nov. 17, 2020 \/PRNewswire\/ &#8212; The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Wells Fargo &amp; Company (&#8220;Wells Fargo&#8221; or the &#8220;Company&#8221;) (NYSE: WFC) securities between October 13, 2017 and October 13, 2020, inclusive (the &#8220;Class Period&#8221;). Wells Fargo investors have until December 29, 2020 to file a lead plaintiff motion. If you are a shareholder who suffered a loss, click here to participate. On April 14, 2020, Wells Fargo announced its first quarter 2020 financial results in a press release. Therein, the Company announced &hellip; Continue reading &quot;The Law Offices of Frank R. 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Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors - Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/","og_locale":"en_US","og_type":"article","og_title":"The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors - Market Newsdesk","og_description":"Shareholders with $50,000 losses or more are encouraged to contact the firm PR Newswire LOS ANGELES, Nov. 17, 2020 \/PRNewswire\/ &#8212; The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Wells Fargo &amp; Company (&#8220;Wells Fargo&#8221; or the &#8220;Company&#8221;) (NYSE: WFC) securities between October 13, 2017 and October 13, 2020, inclusive (the &#8220;Class Period&#8221;). Wells Fargo investors have until December 29, 2020 to file a lead plaintiff motion. If you are a shareholder who suffered a loss, click here to participate. On April 14, 2020, Wells Fargo announced its first quarter 2020 financial results in a press release. Therein, the Company announced &hellip; Continue reading \"The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Wells Fargo &amp; Company (WFC) Investors\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/","og_site_name":"Market Newsdesk","article_published_time":"2020-11-17T16:48:21+00:00","og_image":[{"url":"https:\/\/mma.prnewswire.com\/media\/1221557\/The_Law_Offices_of_Frank_R_Cruz_Logo.jpg","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-wells-fargo-company-wfc-investors-3\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"The Law Offices of Frank R. 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