Mutual Fund Broker Kickbacks: Wells Fargo
We brought suit against Wells Fargo alleging that it secretly gave brokers kickbacks for pushing clients into specified mutual funds. We convinced the court to certify the case as a class action for all investors in three Wells Fargo Advantage mutual funds: Small Cap Growth, Diversified Equity, and Montgomery Emerging Markets.
We then persuaded Wells Fargo to settle the claim. In settlement, it created a fund of $1.15 million, which was distributed to investors under a court-ordered allocation plan.