Wells Fargo Must Show Foreclosure Deal Is Fair, Judge Says

Law360, San Francisco (March 22, 2013, 5:32 PM EDT) -- A California federal judge again refused Friday to approve a proposed settlement between Wells Fargo Bank NA and a class of 28,000 homeowners who say the bank sent them deceptive foreclosure-delay offers, arguing the deal could keep many plaintiffs from recouping their losses.

U.S. Magistrate Judge Joseph Spero kicked the preliminary settlement back to the parties' attorneys, demanding details on how many class members are likely to make claims against the settlement fund, which is capped at $500,000 under California law.

Although the attorneys argued that...
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