Wells Fargo prevails in dismissal of suit seeking over $500M
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- Investors alleging that Wells Fargo (NYSE:WFC) illegally forced an investment firm to liquidate certain investment portfolios in response to temporary market volatility lost their bid to revive their lawsuit against the San Francisco-based bank, which was acting as futures commission merchant to the firm.
- The U.S. Court of Appeals for the Second Circuit affirmed a lower court ruling to dismiss the suit filed by Joseph and Todd Kafka on behalf of investors in LJM Investment Fund LP and LJM Partners Ltd. They sought to recover more than $500M in losses incurred by investors.
- The two LJM entities liquidated their entire portfolio on Feb. 6, 2018. Court case is Kafka v. Wells Fargo.
- Wells Fargo (WFC) stock edged up 0.1% in early afternoon trading on Monday.