Kreek

ORDER DISMISSING CLASS ALLEGATIONS ONLY

INTRODUCTION

In this proposed class action, this is a motion to dismiss claims involving defendants’ alleged violation of federal securities laws. Plaintiff investors assert that defendants Wells Fargo & Company and its affiliates violated Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. On this motion to dismiss, defendants argue that plaintiffs’ claims are untimely under the two-year statute of limitations and that the complaint fails to properly plead a violation of Rule 10b-5. This order finds that all putative class members were on inquiry notice more than two years before the action was filed. The statute of limitations for the individual claims was tolled by the filing of Ronald Siemers v. Wells Fargo. The class allegations, however, were not tolled by Siemers. Accordingly, plaintiffs may continue this action as individuals but the class allegations must be dismissed. The complaint otherwise states a valid claim for relief. Defendants’ motion to dismiss plaintiffs’ individual claims is Denied.

STATEMENT

This is a putative class action that arises from allegations of false and misleading statements in…