The United States District Court for the Northern District of California denied Wells Fargo’s motion to dismiss claims asserted in a shareholder derivative suit filed against Wells Fargo and certain of its directors, alleging that the Board of Directors breached its fiduciary duty and failed to oversee the Bank’s lending practices. As a result, the shareholder complaint alleges that Wells Fargo had racial gaps in its mortgage and refinancing loan portfolio.
The shareholder plaintiffs are represented by co-lead counsel at Cotchett, Pitre & McCarthy LLP, Motley Rice LLC and Bleichmar Fonti & Auld LLP, who stated, “We’re very pleased with Judge Thompson’s well-reasoned and thoughtful opinion related to the claims that will move forward. This is an important corporate governance case for our clients, Wells Fargo and other stakeholders. We look forward to discovery.”
