NPPD Suit Against Wells Fargo Moves to Federal Court
Nebraska Public Power District says it was misled over the risks associated with the retirement fund set up by Wells Fargo Bank.
The lawsuit, in which NPPD is suing the San Francisco-based bank for $1.5 million, was moved from Nebraska state court to federal court this month.
NPPD says Wells Fargo marketed its securities lending program as a conservative option for the retirement funds of 2,400 people. But instead of the $140,000 in additional returns the bank projected, NPPD's retirement fund lost money.
Wells Fargo has not directly responded to the lawsuit, and has until Dec. 10 to reply to the allegations in court. The bank did however file the petition to have the suit moved to federal court.
NPPD opted out of a class-action lawsuit investors filed against Wells Fargo over its securities lending program.