Minn. Appeals Court upholds $30M Wells Fargo fraud ruling
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The Minnesota Appeals Court has upheld a $30 million fraud ruling against Wells Fargo.
In June 2010, a Ramsey County District Court jury concluded the bank had breached its fiduciary duty to four Minnesota nonprofits and had violated the Minnesota Consumer Fraud Act.
On Monday, the appeals court struck down all of Wells Fargo's arguments against the ruling. The three-judge panel said it was "mystified" by how the jury determined damages, but said the award was within the law.
Bank spokeswoman Laura Fay said the case may not be over.
"We are very disappointed as you can imagine in the court's ruling and we are going to consider further appeal," Fay said. "We truly believe that the investments made by Wells Fargo on behalf of its clients in the Securities Lending Program were appropriate and in accordance with investment guidelines."
The Minneapolis Foundation, Minnesota Medical Foundation, and two others said Wells Fargo invested their money in overly risky securities. The bank failed to tell them of problems until it was too late to take their money out.
The other two nonprofits are the Workers' Compensation Reinsurance Association and the Robins, Kaplan, Miller & Ciresi Foundation for Children.
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