Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Wells Fargo    WFC

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Wells Fargo : executives, board must face lawsuit over fake accounts, federal judge says

share with twitter share with LinkedIn share with facebook
share via e-mail
10/05/2017 | 06:19pm CET
Wells Fargo & Company CEO and President Tim Sloan testifies before the Senate Banking Committee on Capitol Hill in Washington

A federal judge said current and former Wells Fargo & Co officers and directors, including Chief Executive Officer Tim Sloan, must face nearly all of a lawsuit by shareholders seeking to hold them personally liable for sales abuses and the creations of millions of unauthorized accounts.

U.S. District Judge Jon Tigar in San Francisco said shareholders may pursue claims that Wells Fargo officials looked the other way as employees facing "unrelenting" pressure to meet sales quotas unlawfully opened accounts, and misled the public about fraudulent practices at the nation's third-largest bank.

"Where, as here, plaintiffs' claims arise from a pervasive and undisputed fraud going to the core of the company's business, it is reasonable to infer senior executives knew about, or at least recklessly turned a blind eye to, the stream of red flags," Tigar wrote in a decision dated Wednesday.

The judge also said that in the "unlikely" event Sloan did not know about the suspect practices before 2013, when he was chief financial officer, he was "certainly aware of these issues" by December 2013 when he told the Los Angeles Times: "I'm not aware of any overbearing sales culture."

Wells Fargo spokesman Peter Gilchrist said in an email that the bank was taking "decisive steps" to rebuild trust, including from employees and shareholders. "We will continue to advocate strongly for our positions before the courts," he added.

Lawyers for the plaintiffs did not immediately respond to requests for comment.

The shareholder derivative lawsuit seeks to force officers and directors - or their insurers - to reimburse Wells Fargo for losses caused by their alleged poor oversight and misleading statements, as well as governance changes.

Wells Fargo has been rocked since September 2016 by a series of scandals, including the San Francisco-based bank's creation of as many as 3.5 million unauthorized accounts.

Many lawsuits have been filed, including on behalf of customers, and several top officials including onetime Chief Executive John Stumpf and retail banking chief Carrie Tolstedt have left the bank.

Stumpf and Tolstedt are defendants in the derivative lawsuit.

Sloan testified on Tuesday before the Senate Banking Committee about Wells Fargo's response to the scandals, and faced attacks from Republican and Democratic senators.

Senator Elizabeth Warren, a Massachusetts Democrat, called for Sloan to be fired.

The case is In re: Wells Fargo & Co Shareholder Derivative Litigation, U.S. District Court, Northern District of California, No. 16-05541.

(Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy)

By Jonathan Stempel

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on WELLS FARGO
06:44a Big U.S. lenders reap benefits of higher rates, but savers not so much
06:12a DAVID HENRY : Big U.S. lenders reap benefits of higher rates, but savers not so ..
01/16 WELLS FARGO : loses bid to end Philadelphia predatory lending lawsuit
01/16 Citigroup reports $18 billion loss on one-time tax items
01/15 WELLS FARGO : CAPROCK Group Inc. Has $1.55 Million Position in Wells Fargo & Co
01/13 DAIWA SECURITIES : Wells Fargo & Co (WFC) Stake Decreased by Daiwa Securities Gr..
01/13 Banks Upbeat As Taxes Muddy Earnings -- WSJ
01/13 JAMES DIMON : The Tax Law Means More Profit for JPMorgan -- Update
01/12 JAMES DIMON : The Tax Law Means More Profit for JPMorgan
01/12 WELLS FARGO : Earnings, Home Lending Down
More news
News from SeekingAlpha
01/16 Wells Fargo & Co. 2017 Q4 - Results - Earnings Call Slides
01/16 Weak Core Growth Remains The Theme At Wells Fargo
01/16 WELLS FARGO : Pain Is Very Relative
01/16 Wells Fargo Is Playing Catch-Up With Shareholders
01/15 WELLS FARGO : Mediocrity
Financials ($)
Sales 2018 89 625 M
EBIT 2018 34 854 M
Net income 2018 23 382 M
Debt 2018 -
Yield 2018 2,67%
P/E ratio 2018 12,97
P/E ratio 2019 11,54
Capi. / Sales 2018 3,44x
Capi. / Sales 2019 3,33x
Capitalization 308 B
Duration : Period :
Wells Fargo Technical Analysis Chart | WFC | US9497461015 | 4-Traders
Technical analysis trends WELLS FARGO
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 33
Average target price 65,2 $
Spread / Average Target 4,2%
EPS Revisions
Timothy J. Sloan President, Chief Executive Officer & Director
Stephen W. Sanger Non-Executive Chairman
John R. Shrewsberry Chief Financial Officer & Senior Executive VP
Scott Dillon Chief Technology Officer
Enrique Hernandez Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
WELLS FARGO3.10%307 992
BANK OF AMERICA5.66%325 331
BANK OF CHINA LTD5.29%222 945