Blue Cross Blue Shield of Minnesota et al v. Wells Fargo Bank N.A.
After a seven-week trial, a federal jury in Minnesota found that Wells Fargo did not misrepresent its investment strategy and was not liable on any plaintiff claims in a securities lending matter brought by a class of institutional investors. Plaintiffs alleged that Wells Fargo had grossly mismanaged investments in its securities lending program by putting assets in high-risk ventures and failing to disclose the deteriorating condition of the investments. The jury rejected allegations that the bank had marketed the investment program as risk free, responding to Wells Fargo's argument that the program losses were attributable to the financial crisis. In a related ERISA matter, a judge in the US District Court for the District of Minnesota dismissed allegations of fiduciary breach and fraud leveled against Wells Fargo.
A team from Analysis Group – including affiliate Elizabeth Eccher, Senior Advisor Jeffrey Cohen, Managing Principal Andrew Wong, and Principal Rebeccah Filsoof – was retained by counsel on behalf of Wells Fargo to support academic and industry experts in these matters. Analysis Group affiliates John Peavy, Myron Glucksman, and John McConnell addressed issues related to the customs and practices of securities lending programs, Wells Fargo's management of cash collateral, the market for structured investments, and the quantification of damages.