Wells Fargo Board May Beat Calif. Investor Suit, For Now
Law360, San Francisco (May 9, 2017, 6:14 PM EDT) -- A California state judge on Tuesday tentatively granted Wells Fargo & Co.'s demurrer to a shareholder derivative suit over the bank's false account scandal, granting investors leave to amend their complaint to bolster conclusory allegations the board of directors knew of the illegal sales practices.
The suit, filed in September, alleges the board did nothing to stop the widespread practice of sales representatives — spurred by strict quotas — opening bogus accounts for customers without their knowledge. But Superior Court Judge Curtis Karnow said the breach of fiduciary duty, unjust enrichment, corporate waste, abuse of control, gross mismanagement and California Corporations...
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