Wells Fargo Sales Scandal ERISA Suit Denied Supreme Court Review

May 3, 2021, 1:40 PM

An ERISA lawsuit claiming Wells Fargo & Co.'s recent scandal over fraudulent sales practices drove down the value of company stock in the bank’s 401(k) won’t be reviewed by the U.S. Supreme Court, the justices announced Monday.

The case seeks to hold the bank and top executives liable under the Employee Retirement Income Security Act for a drop in Wells Fargo’s stock price that allegedly caused employees to lose money in their retirement accounts. The U.S. Court of Appeals for the Eighth Circuit in 2020 ruled against plan participant Francesca Allen, explaining that ERISA’s duty of prudence didn’t obligate Wells...

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