Wells Fargo Retirement Plan ERISA Settlement

Wells Fargo Retirement Plan ERISA Settlement

Settlement Website: WellsFargoERISASettlement.com
Objection Deadline: 7/21/2022
Former Applicant Rollover Form: https://beckerwellsfargo.claims-administrator.com/
Deadline For Submitting Former Participant Rollover Form: 07/21/2022
Final Hearing Date: 08/10/2022
Settlement Amount: $32.5 million
Proof Of Purchase: Not applicable

Potential Claim Amount: Class members will be eligible to receive payments after expenses like administration costs and attorney’s fees have been set aside from the $32.5 million settlement fund. The allocation of these funds will be done to class members who invested in the Challenged Funds. Current members holding a positive balance in their plan account and who were investors in the Challenged Funds will have their pay directly deposited into their plan accounts without withholding of taxes. Former participants holding an active plan account since 13th March 2014 and those who invested in the Challenged Funds but do not currently have an account with a positive balance will receive their payments automatically through cheque once all the applicable 1099 taxes have been withheld.

These class members are not required to submit any paperwork for getting the payment. The former participants must have a recovery of at least $5 given the costs associated with check distribution, forms, and tax withholdings. These participants can also fill out a former participant rollover form if they prefer to have their settlement recovery rolled over into a qualified retirement plan or individual retirement account. Taxes shall not be withheld from the rollovers and the former participants should ideally contact a tax advisor before taking a call. Class members whose mailing address has changed are also requested to contact the settlement administrator.

Wells Fargo is an accredited financial institution offering mortgage, banking, and similar services. According to Forbes, it employs nearly 250000 people as of 12th May 2022. Wells Fargo has agreed to honor a class-action lawsuit brought against them with a $32.5 million settlement for resolving all claims against the company’s allegedly mismanaged retirement plan.

The terms of this settlement are going to benefit anyone who was a participant of the Wells Fargo & Co. 401(k) plan at any time between 13th March 2014 to the date when the settlement becomes final. Morgan Stanley has been accused by the plaintiffs in this class action lawsuit of breaching its fiduciary duties and violating the federal Employee Retirement Income Security Act through its offer and retention of certain funds as investment options. These “Challenged Funds” include:

  • Wells Fargo/State Street Target Date CITs, including all vintages, i.e., Wells Fargo/State Street Target Today CIT, Wells Fargo/State Street Target 2010 CIT, Wells Fargo/State Street Target 2015 CIT, Wells Fargo/State Street Target 2020 CIT, Wells Fargo/State Street Target 2025 CIT, Wells Fargo/State Street Target 2030 CIT, Wells Fargo/State Street Target 2035 CIT, Wells Fargo/State Street Target 2040 CIT, Wells Fargo/State Street Target 2045 CIT, Wells Fargo/State Street Target 2050 CIT, Wells Fargo/State Street Target 2055 CIT, Wells Fargo/State Street Target 2060 CIT, Wells Fargo/State Street Target 2065 CIT
  • Wells Fargo/State Street Global Bond Index CIT
  • Wells Fargo/SSGA Global Equity Index CIT
  • Small Cap Fund, including the Wells Fargo Emerging Growth Fund but not including any non-Wells Fargo component funds
  • International Equity Fund, including the Wells Fargo/Causeway International Value CIT but not including its non-Wells Fargo component funds
  • Global Bond Fund, including the Wells Fargo/Federated Total Return Bond CIT but not including its non-Wells Fargo component funds
  • Wells Fargo 100% Treasury Money Market Fund
  • Wells Fargo Stable Value Fund, including all of its component funds, e.g., the Wells Fargo/BlackRock Short Term Investment Fund and Wells Fargo Stable Return Fund

Though Wells Fargo has denied any wrongdoing, it has agreed to honor the settlement for resolving all claims brought against them.

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