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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!