Wells Fargo Workers Advance Challenge to 401(k) Stock Dividends

Former Wells Fargo & Co. employees are moving forward with a proposed class action saying they lost out on as much as $400 million because of the company’s mishandling of the stock in their retirement plan.

Judge Eric C. Tostrud of the US District Court for the District of Minnesota declined to dismiss the case in a sealed opinion docketed Tuesday. Tostrud’s analysis of the dispute hasn’t been made publicly available.

The lawsuit says the banking giant forced workers to pay inflated prices for the Wells Fargo preferred stock in its their 401(k) accounts and mishandled the dividend income earned ...