Wells Fargo and BlackRock Plaintiffs Settle RMBS Trustee Litigation

SAN FRANCISCO–(BUSINESS WIRE)–Wells Fargo Bank, N.A., and a group of institutional investors,
including funds affiliated with BlackRock, Inc. and PIMCO, announced
today that they have reached a settlement that resolves two class action
lawsuits in federal and state court related to Wells Fargo’s role as
trustee for certain residential mortgage-backed securities (RMBS) trusts
created more than a decade ago. Under terms of the agreement, Wells
Fargo will pay $43 million and Wells Fargo denies the claims in the
litigation. Separate from the settlement amount the company is paying,
up to $70 million from certain trust reserve accounts established in
connection with the litigation will be released. The settlement also
resolves a related action seeking declaratory relief against Wells
Fargo, as well as claims by Wells Fargo against certain investment
advisors. Federal and state cases alleging similar claims filed by
certain other institutional investors are not part of the settlement.

Consistent with our sound business practices, we believe that we
appropriately fulfilled our duties as trustee by performing the
responsibilities prescribed in the relevant contracts for these
decade-old trusts,” said Troy Kilpatrick, head of Wells Fargo Corporate
Trust Services. “While we disagree with the allegations, it is in the
best interest of all parties to put this protracted litigation behind us
and we are satisfied with this settlement.”

The agreement, which is subject to approval by the court, resolves
claims regarding the fulfillment of Wells Fargo’s duties as trustee —
including providing certain notifications to certificateholders — for
271 RMBS trusts created between 2004 and 2008. Wells Fargo’s duties were
limited to administering the trusts, and it had no role in the
origination or servicing of the mortgages at issue. The agreement
resolves a significant portion of the claims asserted against the
company in connection with its role as trustee for RMBS trusts. Separate
lawsuits filed by certain other institutional investors concerning 58
trusts are not covered by the agreement.

Following more than four years of litigation, including fact and expert
discovery, we concluded that this agreement provides a fair and
reasonable resolution of the claims,” said PIMCO, BlackRock and the
other institutional investor plaintiffs through their counsel, Timothy
A. DeLange of Bernstein Litowitz Berger & Grossmann LLP. “We appreciate
Wells Fargo’s professionalism in reaching this agreement and commend
their efforts to work with certificateholders to resolve the litigation.
While we believe the claims are meritorious, the settlement provides an
immediate and concrete benefit for class members, while bringing the
litigation to a close.”

Wells Fargo has previously disclosed the RMBS Trustee litigation in its
public filings, including in its most recent Quarterly Report on Form
10-Q. The settlement amount was fully accrued as of June 30, 2018.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investment and mortgage products and
services, as well as consumer and commercial finance, through 7,950
locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile
banking, and has offices in 37 countries and territories to support
customers who conduct business in the global economy. With approximately
262,000 team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018
rankings of America’s largest corporations. News, insights and
perspectives from Wells Fargo are also available at Wells
Fargo Stories


PIMCO is one of the world’s premier fixed income investment managers.
With its launch in 1971 in Newport Beach, California, PIMCO introduced
investors to a total return approach to fixed income investing. In the
45+ years since, PIMCO has continued to bring innovation and expertise
to its partnership with clients seeking the best investment solutions.
Today PIMCO has offices across the globe and 2,150+ professionals united
by a single purpose: creating opportunities for investors in every
environment. PIMCO is owned by Allianz S.E., a leading global
diversified financial services provider.


Wells Fargo
Beth Richek, 704-374-2545

John Campbell, 415-396-0523
Reid, 212-597-1301
Global Head of Corporate Communications


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