Shareholders' suit against Wells Fargo can proceed

Directors of Wells Fargo & Co., the largest U.S. mortgage lender, must face investors' claims that the bank failed to properly disclose details of its foreclosure practices to government investigators, a judge has ruled.

U.S. District Judge Susan Illston in San Francisco rejected Wells Fargo's request to dismiss shareholders' allegations that directors wrongfully failed to disclose their opposition to a government probe of the bank's mortgage lending and foreclosure policies.

"The fact that the company was allegedly stymieing the government regulators is certainly material to stockholders when considering whether to authorize a more serious internal investigation," Illston said in Feb. 9 ruling.

Lawyers for a pension fund and trust that invested in Wells Fargo filed a so-called derivative suit against the bank alleging that directors misled investors about their opposition to the government investigation of the company's foreclosures and the need for further internal probes of Well Fargo's practices.

Shareholders don't seek individual awards in derivative suits. Any recovery in the case from insurance covering directors and officers will go into the bank's coffers. Bloomberg

Retail sales up in January

Americans rebounded from a weak holiday season and stepped up spending on retail goods in January. The latest government report on retail sales pointed to a slowly improving economy.

Retail sales rose at a seasonally adjusted 0.4 percent last month, the Commerce Department said Tuesday.

Consumers spent more on electronics, home and garden supplies, sporting goods, at department and general merchandise stores and at restaurants and bars. They also paid higher prices for gas.

Spending on autos fell in January, the report showed, even though automakers had previously reported higher sales last month. That could mean that dealers offered more discounts to attract buyers.

The January retail sales figures were an improvement from December, which were downwardly revised to show a flat reading. And excluding autos, building materials and gasoline station sales, core retail spending jumped 0.7 percent. AP

Banks' ratings could drop

Moody's Investors Service, one of the three main credit ratings agencies, is expected to downgrade the debt ratings of Bank of America, Wells Fargo and a number of other banks, according to a report published by CreditSights and reported on by TheStreet.com.

The report cites comments on a Feb. 1 conference call by Moody's executives that some global banks could see two- or three-notch downgrades because of eurozone weakness and uncertainty in capital markets.

Other banks cited were JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.

All three credit ratings agencies downgraded Bank of America's credit rating last year. Andrew Dunn

ReVenture to add homes

The developer of eco-industrial ReVenture Park said Tuesday it has added a residential component on 578 acres surrounding its primary site.

Developer Forsite Development said UNC Charlotte's Urban Design program, including director David Walters and colleague Jose Gamez, will create a vision and design principles for the project.

Renewable energy, energy efficiency, natural areas and recreation and water conservation will be key principles, the company said. Forsite said it plans to expand a conservation easement that now protects the property and link greenways with trails. Bruce Henderson