Blue Cross sues Wells Fargo 07 September 2011Minneapolis Reporter: Anna Reitman
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Blue Cross and Blue Shield of Minnesota and other institutional investors launched a suit against Wells Fargo in Minnesota federal court, accusing the financial services company of grossly mismanaging their investments in its securities lending program, according to Law360.
A spokeswoman for Wells Fargo released the following statement to SLT: “Wells Fargo categorically denies the allegations made in this lawsuit and will vigorously defend against them. The investments made by Wells Fargo on behalf of clients in the securities lending program were in accordance with investment guidelines, and were highly rated and suitable at the time of purchase. As with all investments, the investors bear the risk of their investment losses. Wells Fargo continues to act with clients’ best interests in mind and strives to provide exceptional customer service at all times.”
A Blue Cross and Blue Shield of Minnesota spokeswoman said the organisation will not be issuing a statement, as it is their practice not to comment on litigation.
Plaintiffs are represented by Robins, Kaplan, Miller & Ciresi, according to Law360. The law firm could not be reached for comment.
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