Wells Fargo 401(k) Forfeiture Case Tossed by Appeals Court (1)

Wells Fargo & Co. scored a victory Tuesday in the first appeals court decision over 401(k) forfeiture handling, when the Eighth Circuit affirmed a decision tossing the case for failing to identify a sufficient injury.

The complaint was properly dismissed for lack of standing because the plaintiff, former Wells Fargo employee Thomas Matula Jr., never alleged that the banking giant’s handling of forfeitures caused any injury to his 401(k) account, the US Court of Appeals for the Eighth Circuit said. Matula’s attorney “candidly acknowledged” during oral argument that the complaint lacked this information, the appeals court said.

Even so, the ...