New Class Wins Cert. In Wells Fargo Real Estate Fraud Suit

Law360, New York (January 5, 2012, 9:28 PM EST) -- A Maryland federal judge on Thursday certified a “tolling class” of plaintiffs accusing Wells Fargo Bank NA, Prosperity Mortgage Co. and others of running a front organization formed to circumvent consumer protection legislation designed to prevent market-distorting business practices within the real estate settlement services industry.

U.S. District Judge William M. Nickerson approved the class of plaintiffs who had been Prosperity customers before December 2006, finding that they could pursue their claims alleging a sham-controlled entity and an inadequate affiliated business arrangements disclosure.

“We are disappointed...
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