Wells Fargo to Keep Facing Some Breach Claims in Cash Sweep Suit

Wells Fargo Bank N.A. must continue facing some allegations it breached obligations by only paying customers nominal interest on their cash accounts while making $4 billion in net interest, a federal judge ruled Friday.

Customers in the consolidated class action against the bank sufficiently alleged that it breached its promise to pay a reasonable rate of interest, its implied covenant of good faith and fair dealing, and its fiduciary duty to advisory clients, Judge Vince Chhabria said. The US District Court for the Northern District of California partially denied the bank’s motion to dismiss.

Chhabria did partially grant dismissal with ...