In a dramatic legal turn, two Pennsylvania residents have filed a class action lawsuit against one of the nation's largest banks, alleging unauthorized electronic fund transfers and breach of fiduciary duty. Jennifer Rice and Erik Westervelt lodged their complaint against Wells Fargo Bank, National Association in the United States District Court for the Eastern District of Pennsylvania on June 17, 2024.
The plaintiffs claim that Wells Fargo held them liable for an unauthorized wire transfer amounting to $24,557.89 from their joint account on December 22, 2023. According to the complaint, Westervelt received a call from someone posing as a representative from Wells Fargo's fraud department. The caller used information that made her appear legitimate and convinced Westervelt to confirm a six-digit number sent via text message. This led to the unauthorized transfer to an unknown Discover Bank account. Realizing he had been scammed, Westervelt immediately reported the incident to Wells Fargo and visited a local branch in Media, Pennsylvania. Despite his prompt actions and subsequent follow-ups with the bank's fraud department, Wells Fargo refused to reimburse the stolen funds.
The lawsuit alleges that Wells Fargo's refusal violates the Electronic Funds Transfer Act (EFTA), which limits consumer liability for unauthorized transactions to $50 if promptly reported. "Defendant failed to act as a reasonable fiduciary would have acted under similar circumstances," states the complaint. The plaintiffs argue that this is not an isolated incident but part of a broader pattern affecting numerous customers who have experienced similar issues with unauthorized transfers and lack of reimbursement.
Rice and Westervelt are seeking class-action status for their lawsuit, representing all individuals in the United States who had funds electronically transferred without authorization from accounts held with Wells Fargo within one year prior to filing this complaint. They allege that Wells Fargo routinely fails to reimburse such customers despite timely notifications of unauthorized transactions.
In addition to statutory damages of $1,000 per class member under EFTA, Rice and Westervelt seek actual damages, costs, reasonable attorneys' fees, prejudgment interest at the legal rate, and any other relief deemed appropriate by the court. They also demand injunctive relief requiring Wells Fargo to change its practices regarding handling unauthorized electronic fund transfers.
The case is being handled by attorneys Todd M. Friedman and Matthew R. Snyder from the Law Offices of Todd M. Friedman P.C., based in Woodland Hills, California. The case has been assigned Civil Action No. 2:24-cv-2647 and will be presided over by Judge Anita B. Brody.