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Wells Fargo Scores Rare Win in 401(k) Fee Litigation Series

May 26, 2017, 4:36 PM

Wells Fargo & Co. defeated a proposed class action claiming the company stuffed its $35 billion 401(k) plan full of expensive and poorly performing target-date funds affiliated with the company (Meiners v. Wells Fargo & Co., 2017 BL 176468, D. Minn., No. 0:16-cv-03981-DSD-FLN, 5/25/17).

The allegations of high fees and poor performance failed, a federal judge ruled May 25, because the investors didn’t provide a meaningful benchmark for comparing the Wells Fargo funds. The investors pointed to lower-fee funds offered by Vanguard, but the judge rejected this comparison after finding that the Vanguard funds had a different investment ...