March 28, 2014 – The judge’s order, however, shows he disagreed with the jury’s decision. The pension plan for Blue Cross Blue Shield of Minnesota, along with other pension funds, has lost a legal battle with Wells Fargo & Co. over tens of millions of dollars the funds lost in the bank’s former securities lending program.
The San Francisco-based bank did not breach its fiduciary duties to the pension funds, U.S. District Judge Donovan Frank said in an order filed Monday.
However, he explained in the 12-page order that he was “constrained” by law to adopt the decision a jury reached last August in the case, which had two parts. The jury last August focused on claims by just six of 13 institutional investors that sued Wells Fargo in 2011, those not covered by the federal Employee Retirement Income Security Act (ERISA). The jury decided that Wells Fargo did not breach its fiduciary duty to those six plaintiffs with its investment decisions.
Click on the external link below to review the entire article: