According to a PIonline report U.S. District Judge Donovan W. Frank in St. Paul, Minn., certified the suit as a class action Tuesday, finding that common issues predominated, including whether Wells Fargo “knew or should have known that the investments it selected did not comport with investment mandates.” These issues “will likely turn on substantially the same evidence for the class as a whole,” Mr. Frank said in a 21-page decision.
The lawsuit, filed in 2010 by the $175 million Farmington Hills (Mich.) Employees Retirement System on behalf of more than 100 other institutional investors, claimed breach of fiduciary duty and fraud. The investors sought to be allowed to pursue the case against Wells Fargo as a group.
The suit claimed that Wells Fargo “touted” its securities lending program “as a highly secure way for its institutional clients to maximize portfolio returns,” according to the complaint. Instead, the pension fund said, “Wells Fargo invested a substantial portion of the collateral in extremely risky securities….”
Read all about it at http://www.pionline.com/article/20120327/REG/120329875/wells-fargo-to-face-investors8217-class-action-over-securities-lending
No comments:
Post a Comment