Blue Cross Sues Wells Fargo Over Securities Lending

Law360, New York (September 2, 2011, 7:40 PM EDT) -- Blue Cross and Blue Shield of Minnesota and a slew of institutional investors launched a suit against Wells Fargo Bank NA in Minnesota federal court Thursday, accusing the financial services company of grossly mismanaging their investments in its securities lending program.

The investors say they suffered significant losses after the bank systematically engaged in intentional and illegal conduct by putting their assets in highly risky ventures and then failed to disclose the deteriorating condition of the SLP investments. The suit accuses Wells Fargo of breaches of fiduciary duty,...
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