YES, IT IS TRUE. WELLS FARGO DOES NOT DISCRIMINATE.
IT APPEARS THEY MAY STEAL
FROM THEIR EMPLOYEES TOO.
Kelly L. Hansen
Wednesday April 28, 2010
Pension suit obtains class-action status
Advertiser
CHARLESTON, W.Va. -- The Charleston-based law firm Bailey & Glasser said it has obtained class-action status in a lawsuit against Wells Fargo & Co. involving pension funds.
"The class consists of as many as 160,000 Wells Fargo employees who collectively invested billions of dollars in their 401(k) plan accounts in mutual funds managed by Wells Fargo Funds Management," the law firm said.
The plaintiffs allege that Wells Fargo violated federal pension law by putting its own interests ahead of the interests of its employees when Wells Fargo invested 401(k) plan retirement savings in mutual funds managed by Wells Fargo.
"The plaintiffs believe that their 401(k) plan investments would have done much better in investments unaffiliated with Wells Fargo," Bailey & Glasser said in a prepared statement.
Wells Fargo said, "We disagree with the claims in this lawsuit and continue to vigorously defend the company against it. We believe all of the investment options in Wells Fargo's own 401(k) Plan are reasonable and permissible investments under the Employee Retirement Income Security Act of 1974.
"Fees for trustee and administrative services from Wells Fargo Bank to the 401(k) Plan are paid by Wells Fargo & Co. and are not charged to the participants' 401(k) Plan accounts, which is beneficial to the 401(k) Plan participants," the company said. "We are committed to offering our team members a cost-effective retirement savings plan and believe our funds are generally more cost effective than what team members would pay in the open market."
The lawsuit is titled Figas vs. Wells Fargo & Co. Judge Paul Magnuson of the U.S. District Court for the District of Minnesota certified it as a class action. Bailey & Glasser's Washington, D.C., office represent the plaintiffs along with the Washington, D.C. firms of McTigue & Veis and Sprenger & Lang.
"The class consists of as many as 160,000 Wells Fargo employees who collectively invested billions of dollars in their 401(k) plan accounts in mutual funds managed by Wells Fargo Funds Management," the law firm said.
The plaintiffs allege that Wells Fargo violated federal pension law by putting its own interests ahead of the interests of its employees when Wells Fargo invested 401(k) plan retirement savings in mutual funds managed by Wells Fargo.
"The plaintiffs believe that their 401(k) plan investments would have done much better in investments unaffiliated with Wells Fargo," Bailey & Glasser said in a prepared statement.
Wells Fargo said, "We disagree with the claims in this lawsuit and continue to vigorously defend the company against it. We believe all of the investment options in Wells Fargo's own 401(k) Plan are reasonable and permissible investments under the Employee Retirement Income Security Act of 1974.
"Fees for trustee and administrative services from Wells Fargo Bank to the 401(k) Plan are paid by Wells Fargo & Co. and are not charged to the participants' 401(k) Plan accounts, which is beneficial to the 401(k) Plan participants," the company said. "We are committed to offering our team members a cost-effective retirement savings plan and believe our funds are generally more cost effective than what team members would pay in the open market."
The lawsuit is titled Figas vs. Wells Fargo & Co. Judge Paul Magnuson of the U.S. District Court for the District of Minnesota certified it as a class action. Bailey & Glasser's Washington, D.C., office represent the plaintiffs along with the Washington, D.C. firms of McTigue & Veis and Sprenger & Lang.
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