Benefits & Executive Comp

Wells Fargo Sued Over In-House Funds in $40 Billion 401(k) (1)

March 16, 2020, 2:58 PM; Updated: March 16, 2020, 3:12 PM

Wells Fargo & Co. was sued in the Northern District of California by a former employee who says the company filled its 401(k) plan with expensive, underperforming investments that paid fees to the company.

Yvonne Becker’s proposed class action, filed March 13, challenges the Wells Fargo target-date collective investment trusts in the company’s 401(k) plan, which are the default options for participants who don’t select their own investments. Wells Fargo transferred about $5 billion worth of plan assets to these target-date trusts in 2016, even though the trusts were newly established and had “no prior performance history or track record...

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