Wells Fargo Ducks Shareholder Suit Claiming It Deceived FHA

Law360, San Francisco (May 9, 2013, 8:07 PM EDT) -- A California federal judge Thursday tossed a shareholder derivative class action claiming Wells Fargo's board of directors knew the bank was falsifying loan levels in order to obtain Federal Housing Administration insurance, saying the plaintiffs hadn't shown the directors knew about the purported activity.

U.S. District Court Judge Jacqueline Scott Corley sided with the directors' argument that the shareholders hadn't specifically pled that the board or its audit committee was aware of internal investigations related to the bank's FHA violations or that the U.S Department of...
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