Wells Fargo faces a new legal worry after a federal appeals court on Thursday revived a whistleblower lawsuit by two former employees who said they were fired for trying to report misconduct by lenders that the bank later absorbed.
Reuters reports that The 2nd U.S. Circuit Court of Appeals in Manhattan ordered a federal district judge to revisit the case, which concerned behaviour predating the 2008 financial crisis and recent scandals concerning Wells Fargo’s own practices, after the Supreme Court made it easier for some whistleblowers to sue.
“We look forward to stating our legal position with the district court,” Wells Fargo spokeswoman Elise Wilkinson said.
Robert Kraus, a former Wachovia Corp controller, and Paul Bishop, a former World Savings Bank mortgage salesman, had accused their employers of hiding mortgage improprieties and billions of dollars of losses.
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