Facts

The City of Farmington Hills Employees Retirement System and The Board of Trustees of the Arizona State Carpenters Pension Trust Fund and The Arizona State Carpenters Defined Contribution Trust Fund filed a class action against Wells Fargo Bank N.A.

PLAINTIFFS' CONTENTIONS:
Plaintiffs participated in defendant's securities lending program. Plaintiffs alleged that defendant touted its business as a highly secure way for plaintiffs and other institutional clients to offset fees. However, plaintiff claimed defendant placed plaintiffs' cash in risky investments, causing losses to plaintiffs. As a result, plaintiffs sued defendant, asserting claims for breach of fiduciary duty, breach of contract, violation of the Minnesota Consumer Fraud Act, violation of the Minnesota Unlawful Trade Practices Act, and violation of the Minnesota Deceptive Trade Practices Act.

DEFENDANT'S CONTENTIONS:
Wells Fargo denied plaintiffs' allegations and asserted various affirmative defenses.

Result

The parties reached a $62.5 million settlement.