Mutual Fund Antitrust

This is a settlement for the Antitrust lawsuit.

San Francisco, CA: (Oct-28-07) A class action lawsuit was filed against Wells Fargo & Company, Wells Fargo Investments, LLC, H.D. Vest Investment Services, LLC, Wells Fargo Funds Trust, Wells Fargo Funds Management, LLC, Wells Capital Management Incorporated, Wells Fargo Funds Distributor, LLC, and Stephens Inc., alleging that the defendants had questionable business practices. The suit claimed that the defendants adequately disclosed that they paid brokerage houses to promote Wells Fargo mutual funds. The case further alleges that these payments were financed by alleged excessive fees charged to the mutual funds. The allegations are a violation of the Securities Exchange Act of 1934 and Rule 10b-5.

As part of a settlement reached, the defendants did not admit to any wrongdoing and denied all allegations. Sources state that if the settlement is approved, the defendants will pay $1.15 million into a fund. The fund will be used to pay certain costs of giving notice of the settlement and administering it; the attorneys' fees, expenses, and compensation to the lead plaintiff to be approved by the Court. [BUSINESS WIRE: MUTUAL FUND FEES]