Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • How Modern is Modern Enough?
  • Liberty Mutual Done with Fixing, On to Building
  • 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
Meet the New AI Coworker Who Won’t Stop Snitching to Your Boss
What Men and Women Think About Gender and Pay: AP-NORC poll
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Vehicle Customization, Strong Used Car Market Create Headache for Auto Underwriters
U.S. Forecaster Expects ENSO‑Neutral to Continue, While El Nino Risk Builds

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
From Volatility to Value: How Carriers Can Build Durable Growth
Four Moves That Will Keep Midsize Mutuals Competitive
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
U.S. E&S Growth Slows Again; Declining Berkshire Volume Tops Leaders
U.S., Iran Agree to Two-Week Ceasefire Brokered by Pakistan
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
NAIC Issues Nationwide Data Call to Homeowners Insurers
Verisk, APCIA See ‘Reset’ Rather Than New Normal in Stellar ’25 Results
‘Too Much Space,’ Says State Farm CEO on Shuttering Corporate HQ
P/C Industry Loss Reserves Redundant by More Than $20B: Assured Research
The List Is Growing: More Insurance Apps on ChatGPT
Is Commercial Auto Having It’s ‘Sprinkler Moment’?

See all Top 50

How Insurance Leaders Can Leverage AI Without Sacrificing Trust
How Insurance Can Turn Maintenance Into Measurable Competitive Advantage
The Enemy Within: Insider Threats Are Hard to Detect, Harder to Predict
Investor Chicken Little and the AI Sales Channel: OpenAI Insurance Apps Trigger Uncertainty

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 2026 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.

Using Aerial Imagery in Insurance and Related AI: Emerging Regulatory Themes
Hacked Hospitals, Hidden Spyware: Iran Conflict Shows Digital Fight in Warfare
Four Moves That Will Keep Midsize Mutuals Competitive
Mississippi Home Mitigation Bill Heads to Governor in Effort to Improve Storm Resilience

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
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
Ex-Wells Fargo Official to Join AIG in Security Leadership Role; Three Nominated to Board

Our Contributors

JD HassanIs Commercial Auto Having It’s ‘Sprinkler Moment’?
Jeff GillFrom Volatility to Value: How Carriers Can Build Durable Growth
Manuel Rodriguez VeraHow Insurance Leaders Can Leverage AI Without Sacrificing Trust
Stephen RossThe Enemy Within: Insider Threats Are Hard to Detect, Harder to Predict
Paige WatersUsing Aerial Imagery in Insurance and Related AI: Emerging Regulatory Themes
Jon DeWaldHow Insurance Can Turn Maintenance Into Measurable Competitive Advantage
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Our Contributors

Jeff GillFrom Volatility to Value: How Carriers Can Build Durable GrowthPaige WatersUsing Aerial Imagery in Insurance and Related AI: Emerging Regulatory ThemesManuel Rodriguez VeraHow Insurance Leaders Can Leverage AI Without Sacrificing TrustJon DeWaldHow Insurance Can Turn Maintenance Into Measurable Competitive AdvantageSee All Our Contributors
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • How Modern is Modern Enough?
  • Liberty Mutual Done with Fixing, On to Building
  • Fixing Claims Negotiation (Part 5)

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • Cytora
  • 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
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map