Bernstein Litowitz Berger & Grossmann LLP

Pension Funds Move for Class Certification in RMBS Suit Against Wells Fargo

On February 11, 2011, lead plaintiffs moved for class certification in an action pending against Wells Fargo Bank in the Northern District of California that alleges Wells Fargo violated Sections 11 and 15 of the Securities Act in connection with the sale of more than $27.3 billion in RMBS. Lead plaintiffs, a number of pension funds, allege that the loans underlying the RMBS were riskier than disclosed in the offering documents. They seek certification of a class of all those who were damaged by buying or acquiring RMBS in 17 different offerings that occurred in 2006 and 2007 were traceable to three Wells Fargo registration statements from 2005 and 2006. Lead plaintiffs also moved to appoint Bernstein Litowitz Berger & Grossmann LLP as class counsel. Complaint.