A judge has denied Wells Fargo's request to dismiss a class-action lawsuit that claims the mega bank mismanaged its more-than-$40 billion 401(k) plan.
Brought on behalf of participant Yvonne Becker in U.S. District Court for the District of Minnesota, the class-action lawsuit asserts that some high-level executives at Wells Fargo—who were named as the retirement plan's fiduciaries—selected and retained 17 Wells Fargo proprietary funds, many of which performed below the benchmark that the bank had picked "as an appropriate broad-based market index for each Wells Fargo Fund."
Becker further alleges that the Wells Fargo Funds included "newly launched funds that lacked a performance history necessary to evaluate them, and that the Wells Fargo Funds charged greater fees than similar non-proprietary funds."
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