Wells Fargo class action lawsuit overview:
- Who: Joseph Bacigalupi filed a class action lawsuit against Wells Fargo Bank N.A., Wells Fargo & Co., American Arbitration Association Inc. and five anonymous defendants.
- Why: Bacigalupi claims Wells Fargo and the American Arbitration Association materially misrepresented the arbitration process to consumers while fraudulently inducing them to give up their right to litigate claims in court.
- Where: The class action lawsuit was filed in California federal court.
A new class action lawsuit alleges that Wells Fargo colluded with the American Arbitration Association to materially misrepresent the arbitration process and fraudulently induce consumers to give up their right to litigate claims in court.
Plaintiff Joseph Bacigalupi’s class action lawsuit claims Wells Fargo and the American Arbitration Association made false statements to consumers that fraudulently induced them into accepting an arbitration process that was “riddled with complex and onerous procedures.”
Bacigalupi argues the arbitration process promised to consumers was also “far from a time or cost efficient process,” and was “unduly one-sided” as it denied consumers the right to their own information and, thus, a “fundamentally fair hearing.”
“As a result of Wells Fargo and AAA’s material misrepresentations concerning the arbitration process, they fraudulently induced Plaintiff and Wells Fargo customers to rely on their promises and enter into a binding contract,” the Wells Fargo class action says.
Bacigalupi wants to represent a nationwide class of Wells Fargo customers who were bound by an arbitration agreement in their consumer contract beginning three years preceding the filing of the first individual arbitration demand, according to the Wells Fargo arbitration class action.
Wells Fargo promises arbitration process that contradicts what it really is, class action claims
The Wells Fargo arbitration process promised to its customers is both “fundamentally unfair” and in “direct contradiction to what was promised to them,” the Wells Fargo arbitration class action alleges.
“Accordingly, Plaintiff and Wells Fargo customers are entitled to void the contract with Wells Fargo requiring arbitration, or enjoin its enforcement as fundamentally unfair,” the Wells Fargo class action says.
Bacigalupi claims Wells Fargo and the American Arbitration Association are guilty of fraud in the inducement. He demands a jury trial and requests declaratory and injunctive relief and an award of actual and statutory damages for himself and all class members.
The class action lawsuit also argues Wells Fargo is guilty of breach of contract and violating California’s Unfair Competition Law (UCL) and Federal Reserve Regulation E by failing to provide consumers with a proper and accurate disclosure of overdraft practices in a stand-alone opt-in disclosure agreement using proper opt-in procedures.
Bacigalupi wants to represent several classes of consumers for the overdraft claims, including a Regulation E class, a breach of contract class and a UCL class.
A consumer recently filed a separate class action lawsuit against Wells Fargo over claims the bank shortchanged customers by sweeping uninvested cash into accounts bearing interest rates that were unreasonably low.
Have you accepted an arbitration agreement with Wells Fargo? Let us know in the comments.
The plaintiff is represented by Richard D. McCune, Steven A. Haskins, Valerie L. Savran and Emily J. Kirk of McCune Law Group APC.
The Wells Fargo class action lawsuit is Bacigalupi, et al. v. Wells Fargo Bank, N.A., et al., Case No. 3:24-cv-06778, in the U.S. District Court for the Northern District of California.
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