Another reason Wells Fargo is dropping. Now banks are being sued!! Picked this one off from Wells Fargo. A BIG MESS!! According to the Complaint, the Company made false and misleading statements to the market. Wells Fargo failed to maintain appropriate underwriting standards and accepted due diligence practices in offering billions of dollars' worth of commercial loans. The Company made a high proportion of its loans to customers with poor credit and a higher risk of default than it disclosed to the market. The Company failed to write down commercial loans that suffered impairments in a timely manner. The Company understated the reserves it required to balance expected losses in its portfolios. The Company inflated the net income and expected cash flows of its commercial clients in loan and securitization documents related to CLOs and CMBS. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Wells Fargo, investors suffered damages.