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California Sues Wells Fargo Over Auction Rate Securities

California sued units of Wells Fargo & Co. today, claiming they sold investors $1.5 billion of auction-rate securities and deceptively advertised them as being as safe as cash.

A complaint filed in state court in San Francisco names Wells Fargo Investments LLC, Wells Fargo Brokerage Services LLC and Wells Fargo Institutional Services LLC as defendants.

The complaint wasn’t immediately available to the public, however, the California AG’s office said the lawsuit seeks to recoup losses to investors.