Settlement Resolves All Allegations, Including Against GreatBanc and Sloan
According to the class’s memorandum, the $84 million fund will fully resolve claims against Wells Fargo, GreatBanc Trust Co., and Timothy Sloan, without any party admitting wrongdoing. The agreement explicitly states that neither GreatBanc nor Sloan will be responsible for funding any portion of the settlement, ensuring Wells Fargo alone shoulders the financial cost.
The deal follows months of complex negotiations. After parties reported a tentative agreement in August, the court granted extensions for both sides to finalize settlement terms. The breakthrough came soon after U.S. District Judge Laura M. Provinzino certified a class in January, clearing the way for collective relief for former employees who had enrolled their 401(k) accounts in the bank’s ESOP.
$84 Million Payout Seen as Major Win for Class Members
Class counsel described the resolution as “an excellent result,” highlighting the scale of compensation and the number of employees affected. The fund will be distributed based on each participant’s vested shares of company stock, with all administrative and legal costs deducted prior to allocation.
Neither Wells Fargo nor representatives for the plaintiffs offered comments following the filing, and GreatBanc Trust did not immediately respond to requests for a statement.
