Wells Fargo & Co. will pay $32.5 million to resolve litigation by workers who say the banking giant favored its own funds in their 401(k) plan over cheaper and better performing alternatives, settlement papers filed in Minnesota federal court show.
https://news.bloomberglaw.com/daily-labor-report/wells-fargo-inks-32-5-million-deal-over-affiliated-401k-funds
@1kkm While that is true, the point is employees complaining did nothing. This suit has their F’ing attention, doesn’t it? Apparently, that’s the preferred method of communication with this A$$hat CEO.
I use Blooom to manage and balance my WF 401k ($10 a month). what was interesting is I had Blooom also look at my Vanguard 401k from my last employer. they said I don't need Blooom, it's doing great. WF, they rebalance monthly.
The trail lawyers will get 98% of the money. This doesn't hurt the company, the employees will just eat it some how in their compensation.
They've run around to dozens of firms trying to collect loot.
Dozens of recent ERISA lawsuits have targeted financial companies that put their own mutual funds in their workers’ 401(k) plans. These cases have now garnered more than $470 million in settlements in recent years, with settling employers including Reliance Trust Co. ($39.8 million), McKinsey & Co. ($39.5 million), SunTrust Banks Inc. ($29 million), and Deutsche Bank ($21.9 million).
I noticed this also. We were forced to choose between Wells Fargo fund A or Wells Fargo fund B and we couldn't choose Vanguard.
@qvl, so well said. Completely corrupt and always will be - from the top down.
It's not about fees stupid. It's about sub-par profits and putting employees in funds customers don't want to make bonuses happen.
Are affected employees getting a cut of the settlement? It's not clear from the article.
This was concerning so I reviewed again the fee disclosure document on the plan website, and it indicated no shareholder type fees like sales charges, redemption fees, commissions etc. are charge for our investmetn funds. WF pays the admin fees for participants. I still think the WF retirement plan is a good deal compared to a brokerage account.
I've invested in the company 401k plan for many years. Never noticed any bias towards WF funds, but maybe that's just because I don't rely on the company for fund selection advice.
Wells Fargo GOAT money manager. NOT!
This is why investments I can control are with another bank. Crooks cheating defenseless employees.
Ha Ha. Didn't settle like 3.5 million fake accounts didn't happen.
People have been pointing this out for years. Happy to see the courts finally rule in employees’ favor, though the settlement is a mere pittance relative to how much the bank has profited off their employees’ only retirement program through the years.
Wells Fargo management knows no boundaries when it comes to their greed and self-dealing. If they think they can get away with it, they will stoop to unimaginable lows.
Settled didn't mean guilty though. I would imagine legal fees alone would cost that much. Time to cut bait. JPM got hit with a bigger suit I believe
No surprise here from this bank. Wonder what else is going on? How will Charlie spin this?
Still no ethics at this bankrupt company.
So about 1.25 years of Chuck's salary. Pennies for a multi-billion dollar per quarter company.