Tag Archives: class action

Wells Fargo Hit With Class Action Over Target-Date Funds

Nov. 23 — Wells Fargo & Co. enriched itself at its employees’ expense by including costly, in-house target date funds in its 401(k) plan, a new class action complaint alleges ( Meiners v. Wells Fargo & Co. , D. Minn., No. 16-cv-03981, complaint filed 11/22/16 ).

In the past year, several proposed class actions have targeted financial companies that include in-house investment products in their 401(k) plans. The employees bringing these suits have seen success in many instances, with courts refusing to dismiss cases against BB&T Corp., Putnam Investments LLC, Allianz Asset Management of America and Deutsche Bank.

This lawsuit, filed Nov. 22 in a Minnesota federal court, accuses Wells Fargo of intentionally boosting the 401(k) assets invested in the company’s own target date funds by defaulting participant contributions into those funds through a “quick” and “easy” enrollment process. The Wells Fargo funds consistently underperformed comparable target date funds, despite carrying fees 2.5 times higher, the suit alleges.

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Florida woman files class action against Wells Fargo for ‘phony’ accounts

A Florida woman launched a class-action lawsuit against Wells Fargo Bank after employees created millions of fraudulent accounts nationwide.

Brandon resident Nadine Stanton is suing on behalf of herself and others affected by the fraudulent accounts created by employees of the California-based banking giant. Stanton is a practice manager at United Vein Centers.

Stanton is claiming to be one of thousands of victims of the bank’s “colossal scheme” where they broke the law in numerous ways including using private information and data without consent.

Without permission of customers, employees performed several unauthorized tasks — opened accounts, transferred funds, applied for credit cards, received debit cards, and enrolled in online banking services.

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Wells Fargo hit with shareholder class action lawsuit over sales practices

A shareholder class action lawsuit was filed against Wells Fargo & Co on Monday that alleged the firm misled investors about its financial performance and the success of its sales practices.

Wells Fargo, the United States’ third-largest bank by assets, agreed to pay $190 million earlier this month to settle regulatory charges that some of its employees opened as many as 2 million accounts without customers’ knowledge, in order to meet sales targets.

Robbins Geller Rudman & Dowd LLP announced the lawsuit and is seeking class action status on behalf of buyers of the company’s shares between Feb. 26, 2014 and Sept. 15, 2016.

The lawsuit, which was filed in the U.S. District Court of Northern California, comes nearly a week after Wells Fargo chief executive John Stumpf faced U.S. Senate lawmakers about his oversight at the bank.

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Bank Of America To Pay $1.9M To Settle Calif. OT Claims

Law360, Los Angeles (August 22, 2016, 10:21 PM ET) — Bank of America NA reached a settlement for $1.9 million with a class of 100 employees in California federal court on Monday, potentially putting an end to a case filed last fall over customer service representatives getting shorted on pay.

Candice Williams brought the action on behalf of dedicated service directors at Bank of America’s Brea, California, location alleging that the bank wrongfully classified the workers as administrative employees in order to avoid paying overtime.

The parties reached a $1.9 million settlement in May, according to…

Source: Law360

HUD mortgage sales harm black neighborhoods, lawsuit says

New lawsuit follows Center for Public Integrity report on mortgage sales

New York City homeowners filed a class action lawsuit on August 12 alleging that auctions of government-insured mortgages discriminate against predominately African-American neighborhoods.

The lawsuit involves a U.S. Department of Housing and Urban Development (HUD) program that since 2010 has auctioned delinquent mortgages insured by HUD’s Federal Housing Administration (FHA).

The program, the lawsuit states, strips homeowners of FHA protections without first informing them that their mortgage could be sold.

The Center for Public Integrity first investigated the HUD program in 2015, finding that the mortgages were sold at a steep discount and only 16.9 percent of mortgages sold between 2010 and 2014 successfully avoided foreclosure.

As part of that investigation, the Center for Public Integrity mapped the results of HUD’s auctions in New York City and Baltimore. The map showed that the mortgages clustered in neighborhoods with a higher proportion of minorities.

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U.S. Bank Force-Placed Insurance Class Action Lawsuit

Hustler Money blog:

For all U.S borrowers who between April 8, 2009 and June 30, 2015, were charged by U.S. Bank under a hazard, flood, flood-gap or wind-only lender-placed insurance (LPI) policy for residential property, and who either paid to U.S. Bank the net premium for that LPI policy or who did not pay and still owe U.S. Bank the net premium for the LPI policy, you are eligible for a potential award from the U.S. Bank Force-Placed Insurance Class Action Lawsuit! According to the lawsuit, U.S. Bank placed the insurance on borrowers’ property in such a manner that the bank would receive an unauthorized benefit and get “kickbacks” in the form of commissions from the Assurant defendants. Although U.S. Bank denies all acts of wrongdoings, they have agreed to settle the class action lawsuit in order to avoid the further risk and cost of ongoing litigation. So if you are eligible, file a claim by 8/30/2016 to receive your potential award!

HSBC : to Pay $1.58 Billion to Settle Shareholder Suit — Update

A unit of British bank HSBC Holdings PLC has reached a preliminary agreement to pay $1.58 billion to settle a shareholder class-action complaint over securities fraud tied to the bank’s U.S. subprime lending.

The proposed settlement — which would cover those who owned Household International stock anytime between March 23, 2001, and Oct. 11, 2002 — is subject to court approval. HSBC estimated it would book a $585 million charge, before taxes, in the second quarter.

The London-based bank, Europe’s largest by assets, had previously estimated the financial exposure from the shareholder claims at around $3.6 billion.

A tentative agreement was reached on June 6, just hours before jury selection was to start, said Mike Dowd and Dan Drosman, partners with Robbins Geller Rudman & Dowd LLP and lead trial lawyers for the plaintiffs, including one-time investment firm Glickenhaus & Co., PACE Industry Union Management Pension Fund, and the International Union of Operating Engineers Local No. 132 Pension Plan.

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