“Wells Fargo Inks $32.5 Million Deal Over Affiliated 401(k) Funds,” Bloomberg Law
April 04, 2022
Wells Fargo & Co. will pay $32.5 million to resolve litigation by workers who say the banking giant favored its own funds in their 401(k) plan over cheaper and better performing alternatives, settlement papers filed in Minnesota federal court show.
The deal is expected to benefit more than 400,000 people who invested in Wells Fargo target date funds through the company’s $40 billion 401(k) plan. The settlement amount represents 40% of the plan participants’ estimated damages, according to the filing.
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The Wells Fargo plan participants are represented by Cohen Milstein Sellers & Toll PLLC, Zimmerman Reed LLP, and Keller Rohrback LLP. Wells Fargo is represented by Proskauer Rose LLP and Dorsey & Whitney LLP.