The People of the State of California v. Wells Fargo Investments, LLC, Wells Fargo Brokerage Services, LLC, Wells Fargo Institutional Services, LLC, and Does 1 through 100
Published: Jul. 10, 2010 | Result Date: Jun. 22, 2010 | Filing Date: Jan. 1, 1900 |Case number: CGC-09-487641 Settlement – $1,400,000,000
Court
San Francisco Superior
Attorneys
Plaintiff
Jon M. Ichinaga
(Department of Fair Employment and Housing)
Defendant
David C. Powell
(McGuireWoods LLP)
Raymond C. Marshall
(Sheppard, Mullin, Richter & Hampton, LLP)
Facts
The California Attorney General filed a complaint against Wells Fargo on behalf of 3,500 investors, including retirees, working families, small businessmen, and charities, invested in securities through Wells Fargo.
Contentions
PLAINTIFF'S CONTENTIONS:
The investors claimed Wells Fargo assured them that their investments were "like cash," safe and liquid. After 2008 and the financial crisis, the securities were neither safe nor liquid and investors claimed they could not sell the securities.
Result
The State recovered $1.4 billion through a settlement with Well Fargo affiliates. Half of the investors were Californians, who received $695 million through the buybacks.
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