Compass
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Loan & Distribution Specialist AimPoint Pension
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Regional Vice President of Sales The Retirement Plan Company
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Bates & Company, Inc.
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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AimPoint Pension
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Text of Eighth Circuit Opinion Dismissing ERISA Stock Drop Suit Against Wells Fargo (PDF)
U.S. Court of Appeals for the Eighth Circuit July 28, 2020 13 pages. "This appeal arises out of the unauthorized-accounts scandal at Wells Fargo.... The initial public disclosure of the fraud caused the market value of Wells Fargo's stock to drop drastically ... Appellants alleged that, by failing to take corrective measures to protect the Plan participants, such as publicly disclosing Wells Fargo's unethical sales practices prior to September 2016, freezing investment in the Wells Fargo Stock Funds, or purchasing a hedging product, Appellees breached their duties of prudence and loyalty under ERISA.... We find that a prudent fiduciary -- even one who knows disclosure is inevitable and that earlier disclosure may ameliorate some harm to the company's stock price and reputation -- could readily conclude that it would do more harm than good to disclose information about Wells Fargo's sales practices prior to the completion of the government's investigation. " [Allen v. Wells Fargo, No. 18-2781 (8th Cir. Jul. 27, 2020)] |
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