Wells Fargo Board Wants FHA Deception Suit Dismissed

Law360, New York (August 19, 2013, 1:57 PM EDT) -- Wells Fargo & Co.'s board of directors on Friday asked a California federal judge to toss for a second time a shareholder derivative suit accusing them of allowing the bank to falsify loan levels to wrongly obtain Federal Housing Administration insurance, saying the plaintiff still hadn't justified the suit.

According to the board, despite plaintiff Richard Gulbrandsen's complaint being dismissed previously over his failure to show that it would have been futile to first demand the board remedy its alleged wrongful behavior before filing suit —...
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