Benefits & Executive Compensation News

Case: Retirement Plans/Fiduciary Duties (8th Cir.)

July 31, 2020, 4:46 PM

The Eighth Circuit affirmed the decision of a federal district court in Minnesota dismissing this ERISA action by Wells Fargo & Co. employees who claimed that the company was liable for failing to disclose allegedly fraudulent sales practices earlier. The employees claimed that Wells Fargo and top executives were responsible for a drop in company stock price related to its fraudulent sales practices scandal, and that the company should have protected their 401(k) investments in company stock, by making an early disclosure of the unethical sales practices. The Eighth Circuit held that the employees’ allegations, based on general economic principles—that...

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