BANKING & FINANCE - Dec. 30, 1993
From Times Staff and Wire Reports
Suit Against Wells Fargo Revived: A federal appeals court in San Francisco reinstated the shareholder lawsuit against Wells Fargo & Co. that alleges the banking concern masked problem loans from shareholders during 1991 to artificially inflate the bank’s stock price and to maximize executive compensation. The suit, which does not specify damages, will be returned to U.S. District Court in San Francisco, which had earlier dismissed it. The suit was originally filed in June, 1991, after the bank announced that it would add $350 million to its loan loss reserves. Plaintiffs claim that bank executives made inadequate disclosure of loan problems they knew existed as early as March, 1991.
