Wells Fargo, Equitybuild investment scheme $3.75M class action lawsuit settlement

Wells Fargo agreed to a $3.75 million settlement to resolve a class action lawsuit claiming the bank facilitated an Equitybuild Ponzi scheme that cost consumers millions.

The settlement benefits individuals who invested in the Equitybuild scheme and lost money as a result of the investment.

Plaintiffs in the class action lawsuit claim that Wells Fargo acted as the depository bank in the Equitybuild investment scheme. According to the plaintiffs, the bank is partially responsible for the losses they sustained as a result of the Ponzi scheme.

The Equitybuild scheme aimed to buy and flip investment properties in Chicago that would later generate rental income. In reality, Equitybuild founders allegedly pocketed the money without investing.

Wells Fargo hasn’t admitted any wrongdoing but agreed to a $3.75 million class action lawsuit settlement to resolve allegations it played a role in the Equitybuild scheme.

Under the terms of the settlement, investors can receive a proportional cash payment based on the amount they lost by investing in Equitybuild. Investors who lost a higher amount will receive a larger share of the settlement fund. No payment estimates are available on the settlement website.

Class members received a mailed notice which included a pre-populated “Amount of Loss” that is lower than is accurate, they can submit documentation with their claim form to reflect the higher loss total. 

The deadline for exclusion and objection is May 9, 2023.

The final approval hearing for the settlement is scheduled for July 13, 2023.

To receive settlement benefits, class members must file a valid claim form and W-9 by June 8, 2023.

Who’s Eligible

Individuals who invested in the Equitybuild scheme and lost money as a result of the investment.

Potential Award

Varies

Proof of Purchase

Documentation of losses, if claimants wish to contest their “Amount of Loss”

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

06/08/2023

Case Name

Chang, et al. v. Wells Fargo Bank NA, Case No. 4:19-cv-01973-HSG, in the U.S. District Court for the Northern District of California

Final Hearing

07/13/2023

Settlement Website

EquitybuildSettlement.com

Claims Administrator

EquityBuild Settlement
C/O Rust Consulting, Inc. – 7691
PO Box 2599
Faribault, MN 55021-9599
833-472-1991

Class Counsel

Alan L Rosca 
Paul J Scarlato 
ROSCA SCARLATO LLC

Defense Counsel

David C Powell
Carolee Anne Hoover
K Issac deVyver
Nellie Hestin
MCGUIREWOODS LLP