Civil Plaintiff
Wells Fargo Agrees to Pay $32.5M Settlement in ERISA Case
Wells Fargo is the latest 401(k) plan provider to settle on a class-action case on their own plan.
Wells Fargo has agreed to pay a settlement amount of $32.5 million.
The original lawsuit claimed that upon the creation of their proprietary Wells Fargo/State Street Target collective investment trusts, or Target Date CITs, Wells Fargo added the CITs to the plan even though the funds had no prior performance history or track record which could demonstrate that they were prudent. Despite the lack of a track record, the committee defendants “mapped” nearly $5 billion of participants’ retirement savings from the plan’s previous target-date option into the Target Date CITs.
