Wells Fargo and some of its ex-advisors who were pitted in class action battle with the wirehouse about deferred compensation have reached a tentative settlement, according to court records.
The two sides this month told a federal court they will jointly seek the court’s blessing of the proposed pact.
The advisors have argued that WFA owes them deferred compensation based on allegations WFA miscategorized its plan as exempt from federal rules under Erisa governing vesting rules for such compensation.
Details of the settlement were not disclosed but the deadline for agreement is Dec. 30.
In the interim, the court agreed to halt hearings and any decisions on their prior requests.
With those subpoenas, WFA had sought to uncover how much compensation the reps were receiving from their new employers. Such information was irrelevant to their dispute in the pending class action, the WFA advisors, including LPL representative Robert Berry, argued. Berry is the named class-action plaintiff.
In their federal lawsuit, Berry and the others represent a class of ex-WFA advisors which the court could eventually decide has 1,400 members.
A Wells Fargo spokesperson declined to comment on the tentative settlement.
Lawyers for the ex-WFA advisors from the Houston-based firm Ajamie did not return a request for comment.