Wells Fargo Case Awaits Settlement Ruling
|Illegal Kickbacks||Investment Fraud|
Jul 13, 2007
A federal judge will decide this week whether to allow a revenue sharing class action suit against Wells Fargo or decide that the case can be settled out of court for $1,098,500. Judge William Alsup will on Wednesday receive an analysis from plaintiffs' counsel regarding what they think their clients might receive if the case is tried. "He wants an analysis from the plaintiffs' side as to what could be recovered if the case went to trial," Adam Gutride, counsel for Ronald Siemers, who is bringing the suit, told CR sister publication Fund Action.
This question is addressed in two ways in the stipulation of settlement submitted to the court on behalf of both the opposing litigants. That document first describes the settlement number as a fair and reasonable number and also 65% of the total paid by Wells Fargo for revenue sharing during the period covered by the suit. But in the stipulation of settlement plaintiffs' counsel look at the down side. They are mentioned as having "considered the uncertain outcome and the risk of any litigation, including the risk that they might receive nothing...[they] are mindful of the inherent problems of proof..." The 2003 fund scandals helped spawn an outcropping of revenue sharing cases which, prior to this Wells Fargo case, fared poorly in the courts. A spokesman for Wells Fargo said its policy does not permit comment on continuing legal matters.