Wells Fargo faces class-action lawsuit

Lawsuit alleges Wells Fargo unfairly shuffled Paycheck Protection Program applications

(KYMA, KECY)- A California-based company filed a class-action lawsuit against Wells Fargo citing unfair actions against some small businesses seeking government-sponsored coronavirus relief under the Paycheck Protection Program. 

According to USA Today, in March, the Treasury Department announced the $349 billion forgivable loan plan for small businesses that helps them pay employees during the ongoing COVID-19 crisis. The fund ran out of money on Friday.

The lawsuit alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government's small business agency has said that PPP loan applications would be processed on a first-come, first-served basis. 

The move by Wells Fargo meant that the bank would receive millions more dollars in processing fees, according to the lawsuit. 

"Making matters worse, Wells Fargo concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money," the lawsuit filed in California alleged. 

Wells Fargo has said that fees generated through the program will be distributed as charitable grants to nonprofits that support small businesses.