A State Court authorized this Notice. This is not a solicitation from a lawyer.

Transcription

1 NOTICE OF PROPOSED CLASS ACTION SETTLEMENT Mount v. Wells Fargo Bank, N.A. d/b/a America s Servicing Company Superior Court of California, County of Los Angeles Case No. BC A State Court authorized this Notice. This is not a solicitation from a lawyer. PLEASE READ THIS NOTICE CAREFULLY. YOUR LEGAL RIGHTS WILL BE AFFECTED BY A PROPOSED SETTLEMENT OF THIS CASE. YOU HAVE NOT BEEN SUED. YOU RECEIVED THIS NOTICE BECAUSE YOU MAY BE ENTITLED TO RECEIVE THE BENEFITS OF A CLASS ACTION SETTLEMENT WITH WELLS FARGO BANK, N.A. d/b/a AMERICA S SERVICING COMPANY ( WELLS FARGO OR DEFENDANT ). As explained more fully below, this Notice contains important information concerning a proposed class action settlement that affects the rights of California borrowers: (a) who, during the period July 13, 2006, to December 31, 2012, had a telephone conversation with Wells Fargo in connection with Wells Fargo s servicing of a real-estate secured loan; (b) whose loans were originated or serviced by Wells Fargo Financial and who had a telephone conversation with Wells Fargo after November 10, 2011, through December 31, 2012; or (c) whose payment option mortgage loans were originated or serviced by Wachovia Mortgage, FSB, formerly known as World Savings Bank, FSB, and who had a telephone conversation with Wells Fargo after November 30, 2010, through December 31, There is now pending in the Los Angeles County Superior Court ( Court ) a lawsuit entitled Mount v. Wells Fargo, N.A. d/b/a/ America s Servicing Company, Case No. BC The lawsuit alleges that certain calls were monitored and/or recorded by Wells-Fargo without providing notice and/or obtaining consent to record or monitor. This Notice describes the basic terms of the settlement, any rights you may have in connection with the settlement, the fairness hearing to be held by the Court, and what actions you may take if you are a member of the Class. A full version of the Class Action Settlement Agreement ( Settlement Agreement ), and other information about the litigation, is available at the following website: ( the Website ). YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT SUBMIT A CLAIM FORM EXCLUDE YOURSELF OBJECT GO TO A HEARING The only way to get a payment. You will receive a check from Wells Fargo based on the calculation set out below. In exchange for this payment, you are releasing certain claims against Wells Fargo. Get no payment. This is the only option that allows you to ever be part of any other lawsuit against Wells Fargo about the legal claims in this case. Write to the Court about why you don t like the settlement. Ask to speak in Court about the fairness of the settlement. DO NOTHING Get no payment. Give up your rights. These rights and options and the deadlines to exercise them are explained in this Notice. The Court in charge of this case still has to decide whether to approve the settlement. Payments will be made if the Court approves the settlement and after appeals are resolved. Please be patient. 1. Why did I get this Notice? BASIC INFORMATION You received this Notice because you have been identified by Wells Fargo as a California borrower: (a) who, during the period July 13, 2006, to December 31, 2012, had a telephone conversation with Wells Fargo in connection with Wells Fargo s servicing of a real-estate secured loan; (b) whose loans were originated or serviced by Wells Fargo Financial and who had a telephone conversation with Wells Fargo after November 10, 2011, through December 31, 2012; or (c) whose payment option mortgage loans were originated or serviced by Wachovia Mortgage, FSB, formerly known as World Savings Bank, FSB, and who had a telephone conversation with Wells Fargo after November 30, 2010, through December 31, The Court has ordered that this Notice be sent to you because you have a right to know about a proposed settlement of a class action lawsuit, and about your options, before the Court decides whether to approve the settlement. If the Court approves the settlement and after objections and appeals are resolved, an Administrator appointed by the Court will make the payments that the settlement allows as set out below.

2 This Notice explains the lawsuit, the settlement, your legal rights, and what benefits are available to you, and how to get them. The Court in charge of the case is the Superior Court of the State of California, County of Los Angeles, and the case is known as Mount v. Wells Fargo, N.A. d/b/a/ America s Servicing Company, Case No. BC The people who filed this lawsuit are called the Plaintiffs, and the company they sued, Wells Fargo Bank, N.A. d/b/a America s Servicing Company, is called the Defendant. 2. What is this lawsuit about? The lawsuit claims that Wells Fargo failed to give notice or obtain consent before recording and/or monitoring telephone calls of Class Members. Wells Fargo denies the allegations made in the lawsuit, denies any and all liability with respect to all facts and claims alleged in the lawsuit, and further denies that Plaintiffs and/or the Class Members have suffered any damage. Wells Fargo specifically denies that it has or had a practice or policy of recording telephone calls with mortgage borrowers without their knowledge. 3. Why is this a class action? In a class action, one or more people called Class Representatives (in this case, Madeline Mount, William Mount, and Schuyler Hoffman), sue on behalf of people who have similar claims. All these people are called Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. In this case, the Court certified a class for settlement purposes only. The Honorable Amy D. Hogue, Judge of the Superior Court of the State of California, is in charge of this class action. 4. Why is there a settlement? The Court did not decide in favor of Plaintiffs or Defendant. Instead, Plaintiffs and Defendant have agreed to a settlement and have signed a Settlement Agreement. That way, all parties avoid the uncertainty and cost of a trial, and people like you still get compensation. The Class Representatives and their attorneys think the settlement is in the best interests of you and all Class Members. 5. How do I know if I am part of the settlement? WHO IS IN THE SETTLEMENT? Judge Hogue decided that everyone who fits this description is a Class Member: California borrowers who have not excluded themselves from the Settlement Class and (a) who, during the period of July 13, 2006, to December 31, 2012, had a telephone conversation with Wells Fargo in connection with Wells Fargo s servicing of a real-estate secured loan; (b) whose loans were originated or serviced by Wells Fargo Financial and who had a telephone conversation with Wells Fargo after November 10, 2011; or (c) whose payment option mortgage loans were originated or serviced by Wachovia Mortgage, FSB, formerly known as World Savings Bank, FSB, and who had a telephone conversation with Wells Fargo after November 30, What does the settlement provide? THE SETTLEMENT BENEFITS WHAT YOU GET The settlement provides for Wells Fargo to pay a total amount of $5,600, in settlement (the Settlement Fund ). Of the total amount in the Settlement Fund, $5,000, will be allocated to those Class Members who were called during the period of July 13, 2006 through October 3, The balance of the Settlement Fund, $600,000.00, will be allocated to those Class Members who were called during the period of October 4, 2008, through December 31, As set out in this Notice, you will be entitled to receive a share of the applicable fund, after attorneys fees and expenses, claims administration costs, and a special payment to the Representative Plaintiffs for their services to the Class are deducted ( Net Funds Available for Settlement ). 7. How much will my payment be? Subject to approval by the Court, payments to Class Members will be prorated by dividing the applicable Net Funds Available for Settlement by the number of authorized claimants. 8. How can I get a payment? If you want to participate in the settlement, you must submit a Proof of Claim form online at All Proof of Claim Forms must be submitted online no later than June 12, When would I get my payment? As explained in response to Question 19 below, the Court will hold a hearing on August 13, 2014 to decide whether to approve the settlement. If the Court approves the settlement, there may be appeals. It s always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. Please be patient.

3 10. What am I giving up to get a payment or stay in the Class? Unless you exclude yourself, you are staying in the Class, and you will be releasing (which means you can t sue, continue to sue, or be part of any other lawsuit) all claims against Wells Fargo and each of its present and former parents, subsidiaries, divisions, affiliates, predecessors, successors and assigns, and the present and former directors, officers, employees, agents, insurers, shareholders, attorneys, advisors, consultants, representatives, partners, joint venturers, independent contractors, wholesalers, resellers, distributors, retailers, predecessors, successors, and assigns of each of them, of and from any and all liabilities, rights, claims, actions, causes of action, demands, damages, costs, attorneys fees, losses, and remedies, whether known or unknown, existing or potential, suspected or unsuspected, liquidated or unliquidated, legal, statutory, or equitable, that result from, arise out of, are based upon, or relate to the conduct, omissions, duties or matters during the period of July 13, 2006, to December 31, 2012, that were or could have been alleged in the Actions, including, without limitation, any claims, actions, causes of action, demands, damages, losses, or remedies relating to, based upon, resulting from, or arising out of telephone conversations concerning any and all real estate-secured loans serviced by Wells Fargo that were recorded, eavesdropped upon, wiretapped, or monitored by Wells Fargo, and that such recording, eavesdropping, wiretapping or monitoring, or alleged failure to obtain consent prior to such recording, eavesdropping, wiretapping or monitoring is itself the basis for the claim. The foregoing release includes, by way of example but not limitation, purported violations of the Privacy Act set forth in California Penal Code sections 630, et seq., purported violations of California Business & Professions Code section 17200, et seq., negligence, and any violation of the common law right of privacy to the extent they involve claims based on the recording of telephone conversations which took place in connection with the servicing of real estate-secured loans by Wells Fargo that were recorded, eavesdropped upon, wiretapped, or monitored by Wells Fargo. This lawsuit and the above release are limited to the activities or alleged activities of Wells Fargo in the servicing of real estate secured loans; excluded from this release are any claims arising out of the monitoring or recording of telephone conversations by Wells Fargo or any other party where such telephone conversations did not take place in connection with Wells Fargo s servicing of a real estate-secured loan. EXCLUDING YOURSELF FROM THE SETTLEMENT If you don t want a payment from this settlement, but you want to keep the right to sue or continue to sue Wells Fargo, on your own, about the legal issues in this case, then you must take steps to get out. This is called excluding yourself or is sometimes referred to as opting out of the settlement Class. 11. How do I get out of the settlement? To exclude yourself from the settlement, you must mail a letter saying that you want to be excluded from the Class and settlement in Mount v. Wells Fargo, N.A. d/b/a/ America s Servicing Company, Case No. BC Be sure to include your full name, address, and telephone number, and to sign your letter. You must mail your exclusion request postmarked no later than June 12, 2014, to: Wells Fargo Exclusions CPT GROUP Aston Irvine, CA You can t exclude yourself by phone or by . If you ask to be excluded, you will not get any settlement payment and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit. You may be able to sue (or continue to sue) Wells Fargo in the future. 12. If I don t exclude myself, can I sue Wells Fargo for the same thing later? No. Unless you exclude yourself, you give up the right to sue Wells Fargo for the Settled Claims. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is June 12, If I exclude myself, can I get money from this settlement? No. If you exclude yourself, you will not receive any money under the settlement. THE LAWYERS REPRESENTING YOU AND AMOUNTS PAYABLE FROM THE SETTLEMENT FUND 14. Do I have a lawyer in this case? The Court appointed the law firms of Kiesel Law LLP, Johnson & Johnson LLP, Kazerouni Law Group, APC, and Hyde & Swigart to represent you and other Class Members for purposes of this settlement. Together, these lawyers are called Class Counsel. You do not have to separately pay for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

4 15. How will Class Counsel be paid? Class Counsel will ask the Court to be paid their attorneys fees and expenses from the Settlement Fund, in an amount not to exceed $1,916,667, and payments of $25,000 each to Plaintiffs Madeline Mount and William Mount, and $5,000 to Plaintiff Schuyler Hoffman, for their service to the Class. Wells Fargo has agreed not to oppose this request. 16. Who will pay for the costs to administer the settlement? Claims administration costs will be deducted from the Settlement Fund. OBJECTING TO THE SETTLEMENT You can tell the Court that you don t agree with the settlement or some part of it. 17. How do I tell the Court that I don t like the settlement? If you re a Class Member, you can object to the settlement if you don t like any part of it. You must give reasons why you think the Court should not approve it. The Court will consider your views. To object, you must, no later than June 12, 2014, file with the Court, at the address below, a letter or written statement saying that you object to the settlement in Mount v. Wells Fargo, N.A. d/b/a/ America s Servicing Company, Case No. BC Be sure to include your name, address, telephone number, your signature, and the reasons you object to the settlement. In addition to filing your objection with the Court, you must mail it to the addresses of Class Counsel and Defense Counsel below, postmarked no later than June 12, 2014: COURT CLASS COUNSEL DEFENSE COUNSEL Clerk of the Court Los Angeles Superior Court Central Civil West Courthouse 600 S. Commonwealth Avenue Los Angeles, CA Paul R. Kiesel Kiesel Law LLP 8648 Wilshire Boulevard Beverly Hills, CA Mark D. Lonergan Severson & Werson A Professional Corporation One Embarcadero Center, Suite 2600 San Francisco, CA What s the difference between objecting and excluding? Objecting is simply telling the Court that you don t like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you don t want to be a part of the Class. If you exclude yourself, you have no basis to object because you are no longer in the case. In other words, the case no longer affects you. THE COURT S FAIRNESS HEARING The Court will hold a hearing to decide whether to approve the settlement. You may attend and you may ask to speak, but you don t have to. 19. When and where will the Court decide whether to approve the settlement? The Court will hold a Fairness Hearing at 11:00 a.m. on August 13, 2014, at the Superior Court of the State of California, County of Los Angeles, Central Civil West Courthouse, 600 S. Commonwealth Avenue, Los Angeles, California, Department 322. At this hearing the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Hogue will listen to people who have asked to speak at the hearing. The Court will also decide how much to pay Class Counsel and how much the Plaintiffs should be paid for their services as the Class Representatives. After the hearing, the Court will decide whether to approve the settlement. We do not know how long these decisions will take. 20. Do I have to come to the hearing? No. Class Counsel will answer questions Judge Hogue may have. But, you are welcome to come at your own expense. As long as you have served and filed a written objection on time, the Court will consider it and you do not have to come to Court to talk about it. You may also pay your own lawyer to attend, but it s not necessary. 21. May I ask to speak at the Fairness Hearing? You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your Notice of Intention to Appear in Mount v. Wells Fargo, N.A. d/b/a/ America s Servicing Company, Case No. BC Be sure to include your name, address, telephone number, and your signature. Your Notice of Intention to Appear must be postmarked no later than

5 June 12, 2014, and be sent to the Clerk of the Court, Class Counsel, and Defense Counsel, at the three addresses in Question 17. You cannot speak at the hearing if you excluded yourself. IF YOU DO NOTHING If you do nothing, you will get no money from this settlement and you will not be able to start a lawsuit, continue with a lawsuit, or be part of a lawsuit against Wells Fargo about the Released Claims in this case. To be eligible to share in the Net Funds Available for Settlement, you must submit a Proof of Claim Form (see Question 8). To start, continue, or be a part of any other lawsuit against Wells Fargo about the Released Claims in this case you must exclude yourself from this class (see Question 11). GETTING MORE INFORMATION This Notice summarizes the proposed settlement. More details are in the Settlement Agreement. The Settlement Agreement and all of the documents in the litigation are available for your inspection at the Los Angeles Superior Court Central Civil West Courthouse, 600 S. Commonwealth Avenue, Los Angeles, CA (under Case Number BC395959) from 8:30 a.m. to 4:30 p.m., Monday through Friday. The Settlement Agreement, and other information about the litigation, is also available at the following website: ANY QUESTIONS YOU MAY HAVE REGARDING THIS NOTICE SHOULD BE ADDRESSED TO CLASS COUNSEL IDENTIFIED IN QUESTION 17 ABOVE. PLEASE DO NOT CONTACT THE COURT ABOUT THIS NOTICE.