Shareholders invest in companies throughout Ohio as well as the rest of the United States with the intention of seeing a return on their investment. While this return is not guaranteed, shareholders do expect the company to do its part in the manner in which it conducts business. Depending upon the type of shareholders involved and the company, some shareholders also have a say in the election of company officers, payroll issues and bonuses. Thus, when information is not accurately disseminated to these shareholders and the general public, shareholder disputes become a possibility.
Over the past few years, Wells Fargo & Co. has faced its share of problems, and shareholders have now been given authorization to proceed with legal action. Apparently, Wells Fargo maintained a habit of inflating account and sales data. This information was reported to shareholders and the Securities and Exchange Commission.
Shareholders, as well as the general public, were led to believe that the number of new accounts opened by Wells Fargo employees were approximately 60 percent higher than the actual number. Reports indicate that bank executives and its board of directors were aware of the problem. Additionally, company bonuses were tied to these inflated figures. A federal judge has now given the go-ahead for this matter to proceed through the court system.
When companies do not accurately represent themselves, shareholder disputes can become an issue. For this reason, Ohio-based companies often go to great lengths to verify their information and data prior to presenting it to the general public. Experienced legal counsel can often guide companies in deciding how to avoid possible shareholder disputes as well as the appropriate manner in which to address concerns.
Source: sfgate.com, “Wells Fargo shareholder lawsuit can proceed, judge rules“, Jef Feeley and Kartikay Mehrotra, Oct. 5, 2017