Wells Fargo Signs $84 Million ERISA Deal Over 401(k) Plan Stock

Wells Fargo & Co. agreed to pay $84 million to resolve a class action by employees challenging how the bank handled stock dividends in their 401(k) plan.

The proposed deal covers about 425,000 participants in Wells Fargo’s 401(k) plan who held company stock in their accounts between September 2016 and December 2022. The employees estimated their total potential recovery in the case to be between $0 and $348 million, they said in a Wednesday motion seeking preliminary approval for the deal from Judge Laura M. Provinzino.

The 2022 lawsuit accused the banking giant of mishandling hundreds of millions of ...