Wells Fargo Workers Win Approval for $32.5 Million 401(k) Deal

Wells Fargo & Co. on Monday received preliminary approval for a $32.5 million settlement that resolves allegations the banking giant favored its own funds in its employee 401(k) plan over cheaper and better alternatives, a Minnesota federal court order shows.

The settlement, which represents about 40% of the employees’ estimated damages, is expected to benefit more than 400,000 people who invested in Wells Fargo target date funds through the company’s $40 billion 401(k) plan.

The preliminary approval order was signed by Judge Katherine M. Menendez of the U.S. District Court for the District of Minnesota. Menendez scheduled an Aug. 4 ...