Wells Fargo Accused of Illegally Financing Legal Expenses

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Royal Park Investments SA/NV has filed a proposed class action on behalf of residential mortgage-backed securities investors in the following trusts for which Defendant Wells Fargo serves as trustee:

The complaint, the case says, arises from another suit between the plaintiff and defendant that is pending in the Southern District of New York. The new case alleges that Wells Fargo “has been reimbursing its legal fees and costs incurred in its defense” in the prior litigation directly from the trusts named above.

The suit claims Wells Fargo is not entitled to such advancement or reimbursement and is illegally financing its defense “from the very investors that have accused Wells Fargo of wrongdoing” – specifically, allegations that it broke “contractual and common law duties” owed to investors. The suit wants Wells Fargo to pay back the plaintiff and class members immediately of all money it “has wrongfully taken” and to be ordered to stop engaging in the alleged conduct.