Wells Fargo Gets Big Win in Appeal Over 401(k) In-House Funds (1)

Wells Fargo & Co. scored a big win when an appeals court refused to revive a lawsuit accusing it of failing to remove allegedly expensive and underperforming proprietary funds from its 401(k) plan.

The U.S. Court of Appeals for the Eighth Circuit is the first appeals court to uphold a ruling in favor of a financial company sued over its decision to include proprietary funds in its retirement plan, which workers claim carry excessive fees and perform poorly.

More than two dozen financial companies have been targeted with similar lawsuits, including BlackRock, T. Rowe Price, and JP Morgan. So far, ...