Wells Fargo Sued Over 401(k) Stock After Labor Department Deal

Wells Fargo & Co. continues to face scrutiny over the company stock held by its 401(k) plan, with a federal lawsuit by plan participants coming two weeks after the Labor Department announced a settlement of more than $131 million.

The proposed class action claims plan participants overpaid for the Wells Fargo preferred stock in their retirement accounts for more than a decade. With the help of plan trustee GreatBanc Trust Co., Wells Fargo used the dividend income from this preferred stock to make its required employer contributions to the plan, causing plan participants to miss out on more than $400 ...