Ex-Wells Fargo Workers Advance Lawsuit Over COBRA Notice Threats

Wells Fargo & Co. must face claims that it violated federal law by including misleading threats of criminal and civil penalties in the letters it sends to notify former workers of their right to remain on the company health plan.

The bank argued the penalty language in its COBRA notices was “neither confusing nor legally incorrect.” But this argument goes to the merits of the dispute and can’t be resolved on a motion to dismiss, Judge Tom Barber ruled.

Wells Fargo is accused of violating the federal Consolidated Omnibus Budget Reconciliation Act, which is the federal law requiring companies ...