On October 9th, 2012, the Trust Fund Committee of the Nebraska Public Power District filed a lawsuit against Wells Fargo Bank in Platte County District Court. Court documents show that Wells Fargo is being sued for damages that amount to at least $1,500,000.
Wells Fargo is accused of, failing to reimburse securities or retirement benefits of the NPPD’s Employee Retirement Plan in which Wells Fargo, through the Securities Lending Program, lent to borrowers for collateral.
The NPPD’s retirement plan involves approximately 2,400 individuals, a majority of whom are Nebraskans.
In August of 2007, Wells Fargo proposed that NPPD invest in the proposed ‘Securities Lending Program’ which was said to be essentially risk free and aimed at providing extra income to the NPPD’s retirement plan.
The NPPD decided to opt out of a class action lawsuit which was filed on behalf of all participants of the SLP which claim damage or loss caused by Wells Fargo’s actions or conduct. The class action lawsuit was filed in the US District Court of Minnesota on October 15th, 2010.
The case has now been moved to the U.S. District Court of Omaha, Nebraska.