Wells Fargo Agrees To $32.5 Million Settlement In 401(k) Lawsuit

Posted on April 12th, 2022 at 12:20 PM
Wells Fargo Agrees To $32.5 Million Settlement In 401(k) Lawsuit

From the Desk of Jim Eccleston at Eccleston Law:

Wells Fargo has agreed to pay $32.5 million to settle a class-action lawsuit that alleged the firm violated provisions of the Employee Retirement Income Security Act (ERISA).


Yvonne Becker filed suit against Wells Fargo in 2020 after participating in the firm’s $40 billion 401(k) plan and serving as an employee for 26 years. The suit alleged that Wells Fargo improperly included multiple proprietary collective investment trusts in the 401(k) plan despite the existence of cheaper, better-performing products offered by third parties.


According to court documents, plaintiffs estimate that nearly 400,000 class members likely invested in at least one of the proprietary funds. Additionally, the settlement is expected to recover 40% of the plan participant’s estimated fee damages. According to the proposed settlements, recovery payments will be deposited in the Wells Fargo 401(k) plan accounts of current participants, while former participants will recover their fees by check or as a roll-over into a qualified retirement account.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 
 

Tags: eccleston law, wells fargo, erisa

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