Bloomberg Law
June 4, 2020, 5:09 PM

Wells Fargo Investors Challenge Bank’s PPP Loan Allocations

Jennifer Bennett
Legal Reporter

Wells Fargo & Co. allegedly misled investors about its improper allocation of coronavirus relief loans and the risk of new lawsuits against the beleaguered bank, according to a Thursday suit in California federal district court.

The San Francisco-based bank didn’t tell investors it either planned to misallocate federal Paycheck Protection Program loans—favoring companies seeking large loan amounts over those who filed first—or merely lacked the necessary controls to prevent doing so, the would-be class complaint in the U.S. District Court for the Northern District of California said.

Well Fargo came under fire in 2016 for opening new accounts in customers’ ...

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