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"Their effective and caring advocacy for clients has earned Lieff Cabraser its first-class reputation."
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Case Center
Wells Fargo Overdraft Fees
- Issue: $203 million in restitution; litigation ongoing
Gutierrez v. Wells Fargo Bank, No. C 07-05923 WHA (N.D. Cal.).
On August 10, 2010, U.S. District Court Judge William Alsup issued a 90-page opinion finding that Wells Fargo manipulated its processing of customer debit card purchases to maximize overdraft fees in violation of California state law. Instead of posting transaction chronologically, Wells Fargo deducted the largest charges first, drawing down available balances more rapidly and triggering a higher volume of overdraft fees from its California customers. Judge Alsup ordered that Wells Fargo return to its customers approximately $203 million in restitution and enjoined the abusive accounting practices.
Video - Consumer Protection Lawyer: 2011 Consumer Attorney of the Year Finalists Richard Heimann and Michael Sobol
Judge Alsup's August 10, 2010, decision followed two and half years of extended litigation that culminated in a two-week bench trial which ended in May 2010. The judgment against Lieff Cabraser constituted the 4th largest judgment in California in 2010, and the largest judgment in a class action lawsuit.
Lieff Cabraser partner Richard M. Heimann served as Lead Trial Counsel and tried Gutierrez along with partner Michael W. Sobol. The Court entered judgment on October 25, 2010. Wells Fargo has appealed.
Case Update
On September 9, 2010, Wells Fargo filed an appeal with the 9th Circuit Court of Appeals. No funds will be distributed to the class until appeals are exhausted and the judgment becomes final. This process could take months or even years, although we are making every effort to expedite the process.
The case before Judge Alsup was brought on behalf of the following California Wells Fargo customers: “[A]ll Wells Fargo customers from November 15, 2004 to June 30, 2008, who incurred overdraft fees on debit card transactions as a result of the bank’s practice of sequencing transactions from highest o lowest.” If you are a member of this Class, you do need to take any action at this time to remain a member of the class.
Multi-District Litigation
Lieff Cabraser also serves on the plaintiffs' executive committee in a multi-district litigation action before U.S. District Court Judge James Lawrence King in Miami, Florida, against the nation's major banks for the same fraudulent overdraft practices. In March 2010, Judge King denied defendants' motions to dismiss the complaints. Learn more about the national bank overdraft fee litigation at www.bank-overdraft.com.