ÍøÆØ³Ô¹Ïlls Fargo Agrees To $32.5 Million Settlement In 401(k) Lawsuit
From the Desk of Jim Eccleston at ÍøÆØ³Ô¹Ï:
ÍøÆØ³Ô¹Ïlls Fargo has agreed to pay $32.5 million to settle a class-action lawsuit that alleged the firm violated provisions of the Employee Retirement Income Security Act (ERISA).
Yvonne Becker filed suit against ÍøÆØ³Ô¹Ïlls Fargo in 2020 after participating in the firm’s $40 billion 401(k) plan and serving as an employee for 26 years. The suit alleged that ÍøÆØ³Ô¹Ïlls Fargo improperly included multiple proprietary collective investment trusts in the 401(k) plan despite the existence of cheaper, better-performing products offered by third parties.
According to court documents, plaintiffs estimate that nearly 400,000 class members likely invested in at least one of the proprietary funds. Additionally, the settlement is expected to recover 40% of the plan participant’s estimated fee damages. According to the proposed settlements, recovery payments will be deposited in the ÍøÆØ³Ô¹Ïlls Fargo 401(k) plan accounts of current participants, while former participants will recover their fees by check or as a roll-over into a qualified retirement account.
ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.
Tags: eccleston law, wells fargo, erisa






