"Wells Fargo Employees Sue Over Funds in Retirement Plans," Reuters
November 25, 2016
Wells Fargo & Co. faces a new U.S. lawsuit claiming that it funneled more than $3 billion of employee retirement savings into expensive, underperforming proprietary mutual funds to enrich itself.
The proposed class action lawsuit, filed in federal court in Minnesota, accused the third-largest U.S. bank of "self-dealing and imprudent investing" by steering 401(k) contributions to its Wells Fargo Dow Jones Target Date funds. The lawsuit, filed by a class of employees led by John Meiners, seeks to recoup excess fees and unrealized profits stemming from Wells Fargo's alleged breach of fiduciary duties to all 401(k) participants over the last six years.
The case is Meiners v Wells Fargo & Co. et al., U.S. District Court, District of Minnesota, No. 16-03981. Cohen Milstein Sellers & Toll PLLC and Elias Gutzler Spicer LLC represent the plaintiffs in this action.