A federal lawsuit alleges that The Wells Fargo ESOP Fund (the “Fund”) within the Wells Fargo & Company 401(k) Plan (the “Plan"), was harmed by breaches of fiduciary duties to the Plan and prohibited transactions in violation of the Employee Retirement Income Security Act (“ERISA”). Plaintiffs sued GreatBanc Trust Company (“GreatBanc”), Wells Fargo & Company (“Wells Fargo” or “the Company”), and Timothy J. Sloan (together, “Defendants”). Plaintiffs allege that (i) Wells Fargo unlawfully used dividends earned from Wells Fargo Preferred Stock held in the ESOP to offset a portion of the Company’s employer contributions to the Plan and (ii) GreatBanc, as independent fiduciary to the ESOP, knowingly participated in these violations and failed to remedy them. Defendants deny all allegations of wrongdoing, fault, liability or damage to the Plaintiffs and the Class and deny they engaged in any wrongdoing or violation of law or breach of fiduciary duties. Among other things, Defendants contend that their actions were authorized under the law and required by the Plan document, and that the Plaintiffs and the Class were not harmed.
A Settlement has been reached that applies to all claims in this case. Defendants deny all claims, and nothing in the Settlement is an admission or concession on their part of any fault or liability whatsoever.
This is a Class Action Settlement. The Class is defined as:
All participants in the Wells Fargo & Co. 401(k) Plan from September 27, 2016, to December 30, 2022 (the “Class Period”), who held any portion of their Plan accounts, at any time during the Class Period, in the Wells Fargo ESOP Fund. Excluded from the class are individual Defendants, individual Defendants’ beneficiaries, individual Defendants’ immediate families, and officers and directors of Wells Fargo. |
The Settlement provides for a $84,000,000.00 Settlement Fund to be allocated to eligible Class Members after all Court-approved deductions, Settlement Administration Expenses (such as distributing notice), Class Counsel’s attorneys’ fees and costs, and other expenses. Then the Net Settlement Fund will be paid to the Class under the Plan of Allocation. The terms of the Settlement are in the Class Action Settlement Agreement and Release dated November 4, 2025 (the “Settlement Agreement.)
This website and the Notice are a summary. In the event of any inconsistency, the Settlement Agreement, and any order of the Court, controls. The Settlement Agreement is neither an admission or concession by Defendants of any fault or liability, nor an admission by Plaintiffs that their claims lacked merit.
Your rights and the choices available to you—and the applicable deadlines to act—are explained further on the FAQ page and the Notice.
Your Legal Rights and Options Under the Settlement | |
If you have an Active Plan Account | If you have an Active Plan Account, meaning your Plan Account has a positive balance, you will receive your share of the Net Settlement Fund as a direct deposit into your Plan Account. |
If you have withdrawn the balance from your Plan Account | If you have withdrawn the balance from your Plan Account, you will receive your share of the Net Settlement Fund, if any, via check sent by mail (unless you elect a rollover to a qualified plan or individual retirement account (IRA)). |
You can object to the Settlement no later than February 26, 2026. | If you want to object to any part of the Settlement, or to (i) the requested attorneys’ fees and expenses, (ii) administrative fees, costs, and expenses, or (iii) Service Awards, you must submit your objection and any supporting documents to the Court and Settlement Administrator by U.S. Mail or email by February 26, 2026. More information about the objection process is in Question 9 . |
You can attend a hearing on March 17, 2026, to discuss the fairness of the Settlement. | A Fairness Hearing will take place on March 17, 2026, 2026 at 9:00 a.m. CDT before the Honorable Judge Laura M. Provinzino, United States District Court for the District of Minnesota, Warren E. Burger Federal Building and United States Courthouse, 316 North Robert Street, St. Paul, MN 55101, in Courtroom 3A, to determine whether to grant final approval of the Settlement and approve (i) the requested attorneys’ fees and expenses, (ii) administrative fees, costs, and expenses, and (iii) Service Awards to the Class Representatives. You may also attend the Fairness Hearing on March 17, 2026. If you wish to attend and speak at the hearing, you must provide the Court and Settlement Administrator with notice of your intent to appear by February 26, 2026. Please note that you may not be permitted to make an objection to the Settlement if you do not comply with the requirements for making objections. |
The Court has yet to decide whether to approve the Settlement. Payments under the Settlement will be made only if the Court finally approves the Settlement, and that final approval is upheld in the event of any appeal.
Upcoming Important Dates
Rollover Form Deadline
2/26/2026
Objection Deadline
2/26/2026
Fairness Hearing
3/17/2026 at 9:00 a.m. CDT