Wells Fargo Pays $7.4 Million to Settle Bonus Lawsuit

Posted on January 3rd, 2015 at 9:22 AM
Wells Fargo Pays $7.4 Million to Settle Bonus Lawsuit

From the Desk of Jim Eccleston at Eccleston Law Offices:

Wells Fargo Advisors has agreed to pay $7.42 million to settle a class action claim that the firm wrongly withheld incentive compensation from two former advisers and a certified class.  

According to the compliant, the firm's plan (known as the performance contributions and deferral plan) provided additional deferred compensation for advisers who met performance hurdles. That money would vest based on a set schedule and become payable only if the adviser continued to work at Wells Fargo Advisors or was eligible for retirement. The firm would continue to pay out the unvested portion of their deferred compensation under the condition that they did not work for a competitor firm for at least three years.

The two brokers, who had earned the bonuses by meeting performance goals and who were eligible for retirement under the terms of Wells Fargo's plan, went to work for competitor firms within three years after they left the firm. They argued that the anti-competition provision, which required them to forfeit the remaining balance under their plan, was anti-competitive and a violation of state labor laws.

The settlement will provide a total of $5.56 million to around 135 affected brokers in California and North Dakota.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law Offices, Wells Fargo, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.