Former employees Aryne Randall, Scott Kuhn, and Peter Morrissey sued Wells Fargo, GreatBanc, and CEO Timothy J. Sloan, alleging the bank improperly used released common stock and preferred stock dividends to satisfy its required matching and profit-sharing contributions under the 401(k) Plan.
The court found the settlement fair, reasonable, and adequate, noting that while the legal theories were novel and faced significant hurdles from recent case law, the $84 million fund provides a substantial remedy to more than 425,000 class members.
Class Counsel will receive $20,160,000 in attorneys’ fees, representing 24% of the settlement fund, along with $173,995.58 in costs and expenses. Each of the three named plaintiffs will receive a $25,000 service award.
The court also authorized the payment of approximately $418,000 in settlement administration expenses to Simpluris, with any remaining funds after future expenses to be distributed to the class rather than reverting to the defendants.
The action is dismissed with prejudice.