Wells Fargo Dodges Most Of Auto Insurance Stock-Drop Suit

Law360 (January 13, 2020, 10:41 PM EST) -- A California federal judge said Friday that Wells Fargo and its former CEO Timothy Sloan will have to face at least some of a proposed securities fraud class action that alleges misconduct in the bank's auto loan insurance practices was concealed from investors.

The suit from lead plaintiff Construction Laborers Pension Trust for Southern California claims that Wells Fargo & Co. knew by summer 2016 that hundreds of thousands of auto loan customers had been charged for insurance they didn't need or want, yet despite the bank conducting an internal probe and reporting the matter to federal regulators, investors were kept...

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