Eighth Circuit Upholds Dismissal of Claims Accusing Bank of Bias in Retirement Savings Offerings
A former employee filed a class action accusing Wells Fargo and its executives of breaching their fiduciary duty. The plaintiffs complained the company directed the pension funds of employees towards its own retirement savings products rather than more favorable options and failed to remove their inordinately expensive and underperforming funds from the pension plan's options. The federal district court in Minnesota dismissed the case for failure to state a claim. On appeal, a unanimous panel found the employees failed to prove the bank’s investment funds were not a prudent option for the employer’s retirement plan. This ended the inquiry against the embattled bank.