A Wells Fargo employee from St. Louis is among those seeking class-action status for a lawsuit alleging the company mishandled money in its employees’ retirement funds.
The lawsuit was filed Tuesday in federal court in Minnesota by employees led by John Meiners of St. Louis. The suit accuses Wells Fargo of “self-dealing and imprudent investing” by steering more than $3 billion of employee 401(k) contributions to more expensive, underperforming mutual funds in order to benefit itself.
The suit seeks the recovery of excess fees and unrealized profits for the employees due to the alleged breach of fiduciary duty. Meiners claims that if the Vanguard target date funds had been used instead of the Wells Fargo proprietary funds, employees could have earned $323 million more in returns over a five-year period.
Read more: St. Louis Business Journal