![]() ![]() as the Fund Administrator of the Fair Fund and set the administrator’s bond at $500,000,000.00. On May 21, 2020, the Commission issued an order appointing Rust Consulting, Inc. On March 10, 2020, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator for the Fair Fund. See Commission’s Order: Release No. The Fair Fund has been deposited in an interest-bearing account at the United States Treasury’s Bureau of Fiscal Service. The Fair Fund consists of the $500 million paid by the Respondent pursuant to the Order. ![]() The Commission also established a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty can be distributed to investors harmed by the Respondent’s conduct described in the Order. See Commission’s Order: Release No. The Commission found that Wells Fargo violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and ordered it to pay a $500 million civil money penalty to the Commission. According to the Order, Wells Fargo, among other things, failed to disclose to investors that the Community Bank’s sales model had caused widespread unlawful and unethical sales practices misconduct that was at odds with its investor disclosures regarding needs-based selling, and that the publicly reported cross-sell metric included significant numbers of unused or unauthorized accounts. At all relevant times, Wells Fargo was a publicly traded financial services corporation with common stock registered under Section 12(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and quoted on the New York Stock Exchange (Ticker: WFC). In the Order, the Commission found that from 2012 through 2016, the Respondent violated the federal securities laws by misleading investors regarding the success of the core business strategy of the Community Bank operating segment, its largest business unit. If you still have questions about the settlement, you can contact the Settlement Administrator atĪvantair Employee Class Settlement c/o Rust Consulting, Inc.On February 21, 2020, the Commission instituted and simultaneously settled cease-and-desist proceedings against Wells Fargo & Company (the “Respondent” or “Wells Fargo”). Thus, we do not know if there will be additional payments, and if there are additional payments, we do not know when they will occur and we do not know how much money employees might receive from any additional payments. We are hopeful that there will be more money available in the bankruptcy estate to make additional payments to the class members in the future but we cannot guarantee anything. You can view the settlement agreement, notice to class members and order approving the settlement at Class members will also receive tax documentation reflecting the payment. The members of the class will be paid pro rata based upon the money received by the settlement fund for unpaid wages, including WARN Act damages, subject to employee and employer withholding. ![]() We anticipate that class members will receive their first payment in January 2017. We are very pleased to report that the bankruptcy court’s multiple orders approving all of the settlements necessary for the employees to receive money from the bankruptcy estate have become final. ![]()
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