March 19, 2020

US bank Wells Fargo, which previously banned its clients from buying Bitcoin and other digital currencies due to “high volatility and risks,” is being sued by a former employee who charges it with mismanaging its 401k plan.

Participants of a retirement savings plan offered by Wells Fargo sued the banking giant and fiduciaries, claiming that the executives violated the Employee Retirement Income Security Act of 1974 (ERISA) by using some of its own investments while ignoring cheaper and potentially better-performing options.

The plaintiffs, who seek a class-action suit, filed a complaint on March 13 in a US District Court in San Francisco, California. According to the file, defendants picked investments “that benefited Wells Fargo & Co. and its subsidiaries and executives.”

Yvonne Becker, a former Wells Fargo employee, says that the bank filled its 401k plan with expensive, underperforming investments that ultimately paid fees to itself. She filed the suit against Wells Fargo, its board of directors, two committees, and fiduciaries including Galliard Capital Management.

The entire article can be accessed here.