Posts in Shareholder Actions
Wells Fargo Fraudulent Account Opening Litigation: Response to Mitchell Motion to Transfer Actions

In In re: Wells Fargo Fraudulent Account Opening Litig., J.P.M.L., No. 2766, (March 28, 2017), Wells Fargo Bank, N.A. and Wells Fargo & Company (“Defendants”) responded to Plaintiffs’ pending motion to transfer putative class actions. See Jabbari, et al. v. Wells Gargo & Co., et al., No. 3:15-cv-02159-VC (N.D. Cal., filed May 13, 2015) (“Jabbari Action”), pursuant to 28 U.S.C. § 1407.

According to the allegations in the complaint, Defendants, acting without the consent of Plaintiffs, opened accounts in their names and enrolled them in, or submitted applications on their behalf for, various products and services.

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Kokocinski v. Collins: Application of the Business Judgment Rule

In Kokocinski v. Collins, 850 F.3d 354 (8th Cir. 2017), the Eighth Circuit Court of Appeals affirmed the dismissal of Charlotte Kokocinski’s (“Plaintiff”) shareholder derivative action against Medtronic’s directors and officers (“Defendants”) and the Special Litigation Committee formed by Medtronic (“SLC”). The court held that the District Court did not abuse its discretion because Defendants properly formed the SLC, the SLC was entitled to discretion under the Business Judgment Rule (“BJR”), and the District Court exercised sound discretion in concluding discovery was not necessary.

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