Wells Fargo Evades $800 Million Lawsuit Over Liquidation (1)

Wells Fargo Securities LLC won’t face a proposed class action that sought to recover up to $800 million in losses related to a 2018 portfolio liquidation, a US judge said.

The suit filed last year alleged that Wells Fargo breached its contract and fiduciary duties, acting negligently by demanding the liquidation of LJM Partnership Funds in response to temporary market volatility on Feb. 5, 2018. But a judge granted the company’s motion to dismiss the claims, ruling that the investor plaintiffs failed to state a claim against Wells Fargo in the US District Court for the Southern District of New ...