{"id":5111,"date":"2010-12-24T00:00:00","date_gmt":"2010-12-24T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2010\/12\/wells_fargo_co_may_have_to_pay"},"modified":"2022-01-13T13:52:53","modified_gmt":"2022-01-13T19:52:53","slug":"wells-fargo-co-may-have-to-pay","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/wells-fargo-co-may-have-to-pay\/","title":{"rendered":"Wells Fargo & Co. May Have to Pay Another $15M to Minnesota Nonprofits For Securities Fraud"},"content":{"rendered":"

A district court judge in Minnesota has ruled that Wells Fargo & Co. must pay four Minnesota nonprofits $15 million or more in costs, fees, and interests for breach of fiduciary and securities fraud<\/a>. The investment bank has already been slapped with a $29.9 million verdict in this case against plaintiffs the Minnesota Medical Foundation, the Minneapolis Foundation, the Minnesota Workers’ Compensation Reinsurance Association, and the Robins Kaplan Miller & Ciresi Foundation for Children. <\/p>\n

Judge M. Michael Monahan, in his order filed on Wednesday, scolded Wells Fargo for its \u201cmanagement complacency, if not hubris\u201d that led to investment losses for clients of its securities-lending investment program. He said that he agreed with the jury\u2019s key findings that the financial firm failed to fully disclose that it was revising the program\u2019s risk profile, impartially favored certain participants, and advanced the interest of borrowing brokers. Monahan said that it was evident that Wells Fargo knew of the increased risks it was adding to the securities lending program and that its line managers did not reasonably manage these, which increased the chances that plaintiffs would suffer financial huge harm.<\/p>\n

Monahan noted that because Minneapolis litigator Mike Ciresi provided a \u201cpublic benefit\u201d by revealing the investment bank\u2019s wrongdoing, Wells Fargo has to pay plaintiffs\u2019 legal fees, which Ciresi\u2019s law firm says is greater than $15 million. Also, the financial firm has to give back to the Minnesota nonprofits an unspecified figure in fees (plus interest) that it charged for managing the investment program, in addition to interest going as far back as 2008 on the $29.9 million verdict.<\/p>\n

Monahan also overturned the part of the jury verdict that was in Wells Fargo\u2019s favor and is ordering a new trial regarding allegations that the investment bank improperly seized $1.6 million from a bond account of children\u2019s charity as the lending program was failing. The district judge, however, denied the plaintiffs\u2019 motion for a new trial to determine punitive damages.<\/p>\n

Judge unloads on Wells Fargo with order on investment program<\/a>, Poten.com, December 24, 2010<\/p>\n

Wells Fargo ordered to pay $30 million for fraud<\/a>, Star Tribune, June 2, 2010<\/p>\n

Wells Fargo to Pay $30M in Compensatory Damages to Four Nonprofits for Securities Fraud<\/a>, Stockbroker Fraud Blog, June 3, 2010\n<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A district court judge in Minnesota has ruled that Wells Fargo & Co. must pay four Minnesota nonprofits $15 million or more in costs, fees, and interests for breach of fiduciary and securities fraud. The investment bank has already been slapped with a $29.9 million verdict in this case against plaintiffs the Minnesota Medical Foundation, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3949,3752,3970,3741,3836],"tags":[],"class_list":["post-5111","post","type-post","status-publish","format-standard","hentry","category-breach-of-fiduciary-duty","category-financial-firms","category-nonprofits","category-securities-fraud","category-wells-fargo"],"yoast_head":"\nWells Fargo & Co. 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