NY-AG v. Wells Fargo

Wells Fargo allegedly failed to disclose to investors that the success of its cross-sell efforts was built on sales practice misconduct at the bank. According to NY-AG, driven by strict and unrealistic sales goals, employees in Wells Fargo’s Community Bank division engaged in fraudulent sales practices, including the opening of millions of fake deposit and credit card accounts without customers’ knowledge. Wells Fargo allegedly made numerous misrepresentations to investors over many years, and failed to disclose its knowledge of systemic problems pervading the bank’s sales practices. According to NY-AG, New York investors lost millions of dollars when the truth was publicly disclosed.

Summary generated from official New York Attorney General press release