Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Why Claims Professionals Must Take Back Negotiation
  • Attracting Talent: How Much Do Mission and Purpose Really ...
  • Biggest Global Reinsurers: AM Best Ranking
  • Carrier Management
  • C-Suite
  • News
  • Research
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Join
  • Login
  • Boardroom Agenda
  • CEO / Chief Executive
  • CFO / Financial
  • Underwriting
  • CTO / Technology
  • Risk
  • Brand Management & Sales
  • Investment Officers
  • Claims / Legal
  • Talent Management
Autumn is the Most Dangerous Season For Car Accidents in the U.S.: CARFAX
FTC Says Finger-Detecting Table Saw Rule Would Raise Prices
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Primary Insurers Must Pay $50M for North Carolina Helicopter Crash Death
The MEMIC Group to Acquire The Dakota Group, Including Risk Administration Services

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Insurance AI Pilots Without a Framework Are Risky Business
On Innovation in Insurance
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
Inflation Hits Med Mal: Actuaries Estimate $4B for Economic + Social
Travelers, Nationwide Leap in J.D. Power Rent Insurance Ranks
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
7 Years of Double-Digit Growth; New Players on Top 25 E&S Insurers List
Two Upgrades and a Downgrade: Rating Actions on CinFin, Next, Erie
Farmers Insurance Data Breach Could Impact More Than a Million Customers
AI for Policy and Claims: Should Insurers Build or Buy?
7 Years of Double-Digit Growth; New Players on Top 25 E&S Insurers List
War of Words

See all Top 50

The Governance Test for AI in Underwriting
Fire Following Earthquakes: What’s the Risk to Insurers?
How Gen AI Is Transforming NAIC Reporting Compliance
Growing Cyber Risks Pressure Insurers to Standardize, Adapt

See all Members Only Content

Benefits

  • News for the P/C Insurance C-Suite - Focused reporting from reliable sources and experienced financial journalists.
  • Research and Analysis Not Found Elsewhere - Exclusive content from researchers think tanks, industry experts and respected analysts.
  • High-Profile Peers - Interviews with thought leaders in the global and U.S. insurance industry.

Online Access

Complete, unrestricted access to the popular CarrierManagement.com website, which provides insurance company C-suite executives with daily news, white papers, advice, instruction and editorial on how to manage insurance companies more efficiently and more effectively.

SCOTUS Won’t Revive Wells Fargo Accounts Scandal Suit

Print Email
May 6, 2021 by Andrew Chung

The U.S. Supreme Court on Monday rebuffed a bid by current and former employees of Wells Fargo & Co to revive a lawsuit over losses to their retirement plan following a scandal over fake accounts that rattled the bank in 2016 and led to billions of dollars in fines and penalties.

The justices declined to hear an appeal by the employees of a lower court ruling that threw out their proposed class action case against San Francisco-based Wells Fargo under a federal law requiring careful management of private-sector retirement plans.

The case centered on the fallout from revelations, beginning in 2016, that Wells Fargo employees opened millions of unauthorized customer accounts after pressure by the bank to meet unrealistic sales goals. Wells Fargo in 2020 agreed to pay $3 billion to settle a joint investigation by the U.S. Securities and Exchange Commission and Justice Department.

Participants in Wells Fargo’s 401(k) retirement plan funds that invested in the company’s own stock sued the bank and the plan’s administrators in 2016 in federal court in Minnesota, accusing them of breaching their duty to act prudently under the Employee Retirement Income Security Act (ERISA).

The employees who filed suit said the administrators did nothing to halt Wells Fargo’s fraudulent practices or protect the plan from the fallout, such as by disclosing the problem to the public. Instead, the employees said in court papers, the plan kept purchasing Wells Fargo stock. After the revelations in September 2016, the plan lost $1 billion, the employees said in court papers.

Under a 2014 Supreme Court precedent aimed at weeding out meritless litigation whenever a company’s stock price drops, plaintiffs must show that a prudent administrator faced with insider information would have considered an alternative course of action.

The St. Louis-based 8th U.S. Circuit Court of Appeals in 2020 threw out the case, finding that the employees had not adequately shown that prudent fund managers would have erred on the side of earlier disclosure.

The Supreme Court in 2020 issued a ruling involving a similar lawsuit by participants in IBM Corp’s retirement plan that did not resolve the dispute over when cases may proceed.

Copyright 2025 Reuters. Click for restrictions.
Print Email
Claims / LegalCommercial LinesGlobal EconomyLitigation/Liability TrendsMarketsNewsRiskThe C-SuiteU.S.Underwriting

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Epoq CEO Reflects as InsurTech Launches Enhanced U.S. Platform
Sharpest Drop in U.S. Road Deaths Seen Since 2008: NHTSA
Inflation Hits Med Mal: Actuaries Estimate $4B for Economic + Social
Insurance Industry Reps Back Reauthorization of Federal Terrorism Backstop

Related Articles

Wells Fargo Loses Bid to Dismiss Shareholder Fraud Claims Over Its Recovery From Scandals
USAA Wins Against Wells Fargo in Mobile Deposit Tech Patent Verdict
Ex-Wells Fargo Official to Join AIG in Security Leadership Role; Three Nominated to Board
Wells Fargo Will Pay at Least $385M to Settle Auto Insurance Scam
Wells Fargo CEO Insists Scandals, Risk Management Woes in Past; Regulator Disagrees
Wells Fargo Will Fork Over $3B to Settle Consumer Abuse Allegations

Our Contributors

Prashant PoddarHow Gen AI Is Transforming NAIC Reporting Compliance
Suresh MurjaniHow Gen AI Is Transforming NAIC Reporting Compliance
Rajeev AggarwalThe Governance Test for AI in Underwriting
Helen AndersenGlobal Reinsurers Meet Cost of Capital for Second Consecutive Year
Matthew MaginleyInsurance AI Pilots Without a Framework Are Risky Business
Pierre BuhlerThe Governance Test for AI in Underwriting
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Our Contributors

Matthew MaginleyInsurance AI Pilots Without a Framework Are Risky BusinessRajeev AggarwalThe Governance Test for AI in UnderwritingPierre BuhlerThe Governance Test for AI in UnderwritingHelen AndersenGlobal Reinsurers Meet Cost of Capital for Second Consecutive YearSee All Our Contributors
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Why Claims Professionals Must Take Back Negotiation
  • Attracting Talent: How Much Do Mission and Purpose Really ...
  • Biggest Global Reinsurers: AM Best Ranking
  • Cigar Butts and Toxic Sludge: The Rebirth of a P/C Insurer

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • HazardHub
  • Indico Data
  • Majesco
  • Verisk
  • Vertafore

Connect with us

  • Email Newsletters
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier Management iconCarrier Management
  • Insurance Journal iconInsurance Journal
  • Claims Journal iconClaims Journal
  • IJ Academy iconInsurance Journal Academy
  • Insurance Journal TV iconInsurance Journal TV
  • MyNewMarkets.com iconMyNewMarkets.com
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map