If you worked at Wells Fargo any time between 2016 and 2022 and had a 401(k) account there, you may be one of roughly 425,000 people entitled to a payment from the Wells Fargo ESOP settlement — and you don’t have to file a single form to get it.
Here’s what the settlement is, why it happened, and what to expect if you’re eligible.
Quick Facts
| Detail | Information |
|---|---|
| Case name | Randall, et al. v. GreatBanc Trust Co., et al. |
| Court | U.S. District Court, District of Minnesota |
| Case number | 22-cv-2354 |
| Defendants | Wells Fargo & Company, GreatBanc Trust Company, former CEO Timothy J. Sloan |
| Settlement amount | $84,000,000 |
| Class period | September 27, 2016 – December 30, 2022 |
| Estimated class size | ~425,000 current and former plan participants |
| Claim form required? | No — payment is automatic |
| Final approval date | April 20, 2026 |
| Approved attorneys’ fees | $20,000,000 |
What Was This Lawsuit About?
The Wells Fargo & Company 401(k) Plan included an Employee Stock Ownership Plan (ESOP) fund holding Wells Fargo preferred stock. That stock paid dividends, and the lawsuit’s core claim was straightforward: instead of passing those dividends through to employees’ accounts on top of the company’s normal matching contributions, Wells Fargo allegedly used the dividend money to offset — effectively replace — a portion of the employer match it would otherwise have owed.
Plaintiffs argued this violated the Employee Retirement Income Security Act (ERISA), the federal law governing employer retirement plans, because it reduced the real value of the benefit employees were promised. GreatBanc Trust Company, which served as the ESOP’s independent fiduciary, was named as a co-defendant on the theory that it knew about the arrangement and failed to stop it. Former CEO Timothy J. Sloan was also named as a defendant.
Wells Fargo and GreatBanc denied wrongdoing but agreed to settle rather than continue litigating, according to the settlement documentation.
This Isn’t the First Time — How It Relates to the 2022 DOL Settlement
Readers researching this topic often run into an earlier, separate resolution: in September 2022, Wells Fargo reached an agreement with the U.S. Department of Labor over the same general ESOP dividend practice and paid about $131.8 million into the plan, which was then distributed to participants in late 2022 and 2023, according to the company’s SEC filings.
That DOL settlement and the Randall class action settlement are different matters, resolved separately, though both concern how ESOP dividends were used to offset employer contributions. The DOL matter was already paid out years ago; the $84 million class action settlement covered here is the newer, separate one that just received final court approval.
Who Qualifies
You’re likely part of the settlement class if you:
- Were a current or former Wells Fargo & Company 401(k) Plan participant, and
- Held any portion of your plan account in the Wells Fargo ESOP Fund at any point between September 27, 2016, and December 30, 2022
There was no way to opt out of the class, and no claim form was ever required — the settlement is structured so eligible participants are paid automatically based on plan records.
Settlement Timeline
- November 4, 2025 — Settlement Agreement finalized between the parties
- March 17, 2026 — Final approval hearing held
- April 20, 2026 — Court granted final approval of the $84 million settlement
- April 2026 — Court approved a $20 million attorneys’ fee award (about 24% of the fund) to class counsel
- August 13, 2026 — Settlement distributions began going out
How Much Will You Receive?
Individual payouts vary and are based on a court-approved Plan of Allocation, which typically weighs factors like how much ESOP-fund exposure a participant had and for how long during the class period. There is no flat per-person amount — the $84 million fund is divided after deducting settlement administration costs, attorneys’ fees, and other court-approved expenses, with the remaining “Net Settlement Fund” allocated across the roughly 425,000-member class.
Because individual allocations depend on personal plan records, there’s no way to state a universal dollar figure; participants received (or will receive) a notice specifying their individual share.
How Payment Works
- Current 401(k) participants generally receive their share as a deposit directly into their existing plan account.
- Former participants generally receive a mailed check or a rollover option, depending on their election.
- Because payment is automatic, former employees should make sure the settlement administrator has an up-to-date mailing address to avoid a delayed check.
Frequently Asked Questions
Do I need to file a claim to get paid? No. This settlement does not require a claim form. Eligible participants are identified through Wells Fargo’s own plan records and paid automatically.
What if I no longer work at Wells Fargo? You can still be eligible. The class covers anyone — current or former employee — who held ESOP Fund assets in the plan during the class period (September 27, 2016 – December 30, 2022).
Is this the same as the 2022 Department of Labor settlement? No. That was a separate, earlier resolution involving a $131.8 million payment to the plan in 2022–2023. This is a distinct class action settlement of $84 million that received final court approval in April 2026.
When will I actually get my money? Distributions began in August 2026, with current participants generally credited faster than former participants who require a mailed check or rollover processing.
Can I still opt out or object? No — the settlement received final approval in April 2026, and there was no opt-out mechanism available to class members.
Accuracy Note
This article is based on publicly available court filings, the official settlement website, legal industry reporting, and Wells Fargo’s SEC disclosures. Settlement details — especially payment timing and individual allocation amounts — can be updated by the court or settlement administrator. If you believe you’re eligible and haven’t received information about your payment, contact the settlement administrator directly using the contact information in your settlement note.
Written and researched by Kevin Tookes, contributor at settlemateapp.com.