Wells Fargo & Co. has agreed to pay $32.5 million to settle a class-action lawsuit that alleged the company violated sections of the Employee Retirement Income Security Act.
Yvonne Becker, who was a participant in Wells’ $40 billion 401(k) plan and an employee for 26 years, filed suit against Wells Fargo in 2020. The lawsuit alleged that several proprietary collective investment trusts in the 401(k) plan, including Wells Fargo's target-date series, were bad choices because less expensive, better-performing products were available from third parties.
The settlement, filed April 1 in U.S. District Court for the District of Minnesota, recovers 40% of plan participant's estimated fee damages. Plaintiffs estimate that at least 400,000 class members invested in at least one of the challenged funds, according to court papers.
Under the proposed settlement, payments will be automatically deposited in the Wells Fargo 401(k) plan accounts of all current participants, while former participants will receive their distribution via check, or as a roll-over into a qualified retirement account.
RIA industry veterans Jay Hummel and John Phoenix have launched a firm which offers 60% equity to advisors with plans to grow to over $5 billion in AUM, before selling to an institutional investor within five years.
A high-net-worth advisory group leaves Wintrust to embrace independence.
Independent firm joins expanding national advisory network.
New research reveals shifting strategies in financial guidance.
Westlake Village office strengthened by acquisition.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
