Contact Information: Contact: David R. Stickney or Timothy A. DeLange BLB&G (858) 793-0070 davids@blbglaw.com or timothyd@blbglaw.com
Bernstein Litowitz Berger & Grossmann LLP Announces Filing of Class Action Suit Involving Mortgage Pass-Through Certificates of Wells Fargo
NEW YORK, NY--(Marketwire - April 14, 2009) - Bernstein Litowitz Berger & Grossmann LLP
("BLB&G") today announced the filing of a class action lawsuit in the
United States District Court for the Northern District of California on
behalf of New Orleans Employees' Retirement System and similarly situated
purchasers of Wells Fargo Asset Securities Corporation Mortgage
Pass-Through Certificates pursuant and/or traceable to the false and
misleading July 29, 2005 Registration Statement and Prospectus Supplements,
October 20, 2005 Registration Statement and Prospectus Supplements or the
false and misleading September 27, 2006 Registration Statement and
Prospectus Supplements (collectively, the "Certificates").
The complaint alleges that on July 29, 2005, October 20, 2005 and September
27, 2006, defendants caused three Registration Statements to be filed with
the SEC in connection with and for the purpose of issuing billions of
dollars of Certificates. The Certificates were issued pursuant to the
Prospectus Supplements, each of which was incorporated into one of the
Registration Statements. The Certificates were supported by pools of
mortgage loans.
According to the complaint, the Registration Statements and their
respective Prospectuses and Prospectus Supplements (the "Offering
Documents") included false statements and/or omissions about: (i) the
underwriting standards used by the loan originators; (ii) the standards and
guidelines used when evaluating and acquiring the loans; (iii) the
appraisal standards used to value the properties collateralizing the loans,
and the corresponding loan-to-value ratios of the loans; (iv) the credit
enhancement supporting the loan securitization process; and (v) the
pre-established ratings assigned to each tranche of Certificates issued
pursuant to the Offering Documents.
As a result, the Certificates are no longer marketable at prices near the
price paid for them, and the holders of the Certificates are exposed to
much more risk with respect to both the timing and absolute cash flow to be
received than the Offering Documents represented. The credit rating
agencies also put negative watch labels on the Certificates, ultimately
downgrading many.
The complaint alleges that Wells Fargo, certain of its officers and
directors and the issuers and underwriters of the Certificates violated
Sections 11, 12 and 15 of the Securities Act of 1933. Plaintiff seeks to
recover damages on behalf of all purchasers of the Certificates issued
pursuant to the Registration Statements and Prospectus Supplements listed
above (the "Class").
On March 27, 2009, the General Retirement System of The City of Detroit
(the "City of Detroit") filed a complaint alleging violations of the
federal securities laws against Wells Fargo and other defendants on behalf
of all purchasers of Wells Fargo Certificates issued pursuant to Wells
Fargo's September 27, 2006 Registration Statement and Prospectus
Supplements. On March 31, 2009, the City of Detroit published notice of
its action to investors, which provided a deadline to seek Lead Plaintiff
status in that case by June 1, 2009.
If you purchased the above identified Certificates that were issued
pursuant and/or traceable to the July 29, 2005, October 20, 2005 or
September 27, 2006 Registration Statements, you may qualify to serve as a
Lead Plaintiff in this action. If you wish to serve as Lead Plaintiff, you
must, no later than June 1, 2009, move the Court to serve as Lead
Plaintiff. Any member of the purported Class may move the Court to serve
as Lead Plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent member of the Class and still be eligible to
share in any recovery in this action on behalf of the proposed Class.
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact David R. Stickney or
Timothy A. DeLange of BLB&G at (858) 793-0070 or via e-mail at
davids@blbglaw.com or timothyd@blbglaw.com. You can view a copy of the
Complaint as filed and this notice online at http://www.blbglaw.com.