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Matula, Jr.", "paragraph_id": "para_6" }, { "text": "Plaintiff - Appellant", "paragraph_id": "para_7" }, { "text": "v.", "paragraph_id": "para_8" }, { "text": "Wells Fargo & Company; Human Resources Committee of the Wells Fargo Board", "paragraph_id": "para_9" }, { "text": "of Directors; Wells Fargo Employee Benefits Review Committee", "paragraph_id": "para_10" }, { "text": "Defendants - Appellees", "paragraph_id": "para_11" }, { "text": "------------------------------", "paragraph_id": "para_12" }, { "text": "Chamber of Commerce of the United States of America; The ERISA Industry", "paragraph_id": "para_13" }, { "text": "Committee; National Retail Federation", "paragraph_id": "para_14" }, { "text": "Amici on Behalf of Appellee(s)", "paragraph_id": "para_15" }, { "text": "____________", "paragraph_id": "para_16" }, { "text": "Appeal from United States District Court", "paragraph_id": "para_17" }, { "text": "for the District of Minnesota", "paragraph_id": "para_18" }, { "text": "____________", "paragraph_id": "para_19" }, { "text": "Submitted: March 18, 2026", "paragraph_id": "para_20" }, { "text": "Filed: May 12, 2026", "paragraph_id": "para_21" }, { "text": "____________", "paragraph_id": "para_22" }, { "text": "Before COLLOTON, Chief Judge, GRUENDER and KOBES, Circuit Judges.", "paragraph_id": "para_23" }, { "text": "____________", "paragraph_id": "para_24" }, { "text": "GRUENDER, Circuit Judge.", "paragraph_id": "para_25" }, { "text": "Thomas Matula, Jr. brought a class action lawsuit against Wells Fargo &", "paragraph_id": "para_26" }, { "text": "Company and two of its committees tasked with administering retirement benefits", "paragraph_id": "para_27" }, { "text": "(collectively, “Wells Fargo”), alleging that Wells Fargo’s use of forfeited 401(k)", "paragraph_id": "para_28" }, { "text": "funds violates several provisions of the Employee Retirement Income Security Act", "paragraph_id": "para_29" }, { "text": "(“ERISA”). See 29 U.S.C. § 1132(a), (e), (f), (g). The district court dismissed the", "paragraph_id": "para_30" }, { "text": "suit with prejudice for lack of Article III standing. We agree that Matula failed to", "paragraph_id": "para_31" }, { "text": "establish Article III standing but remand for the district court to enter a dismissal", "paragraph_id": "para_32" }, { "text": "without prejudice.", "paragraph_id": "para_33" }, { "text": "I. Background", "paragraph_id": "para_34" }, { "text": "Wells Fargo administers a defined contribution 401(k) plan (the “Plan”) for", "paragraph_id": "para_35" }, { "text": "the benefit of its employees subject to the Plan rules and ERISA. While employed", "paragraph_id": "para_36" }, { "text": "by Wells Fargo, employee participants can make immediately vesting contributions", "paragraph_id": "para_37" }, { "text": "to their Plan accounts. Wells Fargo has agreed to “match” up to six percent of those", "paragraph_id": "para_38" }, { "text": "contributions as an employee benefit. Unlike an employee’s contributions, however,", "paragraph_id": "para_39" }, { "text": "Wells Fargo’s contributions vest over time and do not fully vest until an employee", "paragraph_id": "para_40" }, { "text": "reaches three years of employment. Employees who depart from Wells Fargo before", "paragraph_id": "para_41" }, { "text": "reaching the three-year mark forfeit any unvested matching contributions in their", "paragraph_id": "para_42" }, { "text": "accounts to the Plan.1 Under the Plan rules, Wells Fargo, as the Plan administrator,", "paragraph_id": "para_43" }, { "text": "has the “sole discretion” to use these forfeited funds in one of three ways: (1) to", "paragraph_id": "para_44" }, { "text": "offset its employer contributions, (2) “to pay the expenses of the Plan”, or (3) “to", "paragraph_id": "para_45" }, { "text": "make corrective adjustments to Accounts.” Wells Fargo has elected to use forfeited", "paragraph_id": "para_46" }, { "text": "funds to offset its contributions, thereby reducing the amount it must pay out of the", "paragraph_id": "para_47" }, { "text": "company treasury to meet its contribution obligations.", "paragraph_id": "para_48" }, { "text": "1In 2022, Wells Fargo employees forfeited roughly $2 million in unvested", "paragraph_id": "para_49" }, { "text": "matching contributions.", "paragraph_id": "para_50" }, { "text": "-2-", "paragraph_id": "para_51" }, { "text": "On June 11, 2024, Matula sued Wells Fargo on behalf of a putative class of", "paragraph_id": "para_52" }, { "text": "Plan participants and beneficiaries, alleging that the company’s use of forfeited", "paragraph_id": "para_53" }, { "text": "funds to offset its matching contributions—rather than to “pay expenses of the Plan”", "paragraph_id": "para_54" }, { "text": "or “make corrective adjustments”—constituted a breach of fiduciary duty and self-", "paragraph_id": "para_55" }, { "text": "dealing in violation of several ERISA provisions. Wells Fargo moved to dismiss the", "paragraph_id": "para_56" }, { "text": "complaint for lack of subject matter jurisdiction and failure to state a claim. As to", "paragraph_id": "para_57" }, { "text": "the former, Wells Fargo argued that Matula had failed to allege that he suffered an", "paragraph_id": "para_58" }, { "text": "injury in fact and therefore failed to establish Article III standing. The district court", "paragraph_id": "para_59" }, { "text": "agreed on the basis that, contrary to Matula’s assertions in his complaint, the Plan", "paragraph_id": "para_60" }, { "text": "rules did not authorize Wells Fargo to pay any Plan-related expenses borne by", "paragraph_id": "para_61" }, { "text": "participants or to distribute forfeited funds to participants as “corrective", "paragraph_id": "para_62" }, { "text": "adjustments” unless to correct an error in balance calculation. Accordingly, the", "paragraph_id": "para_63" }, { "text": "district court concluded that Matula had failed to plead an actual injury to himself", "paragraph_id": "para_64" }, { "text": "traceable to Wells Fargo’s use of forfeited funds and dismissed his complaint with", "paragraph_id": "para_65" }, { "text": "prejudice.", "paragraph_id": "para_66" }, { "text": "Matula appeals, arguing that the district court committed reversible error by", "paragraph_id": "para_67" }, { "text": "evaluating his standing based on Wells Fargo’s interpretation of the Plan rules and", "paragraph_id": "para_68" }, { "text": "materials not encompassed by the pleadings. Under a properly cabined analysis,", "paragraph_id": "para_69" }, { "text": "Matula asserts that he has established Article III standing. Regardless, however, he", "paragraph_id": "para_70" }, { "text": "also contends that the district court abused its discretion by dismissing the complaint", "paragraph_id": "para_71" }, { "text": "with prejudice.", "paragraph_id": "para_72" }, { "text": "II. Discussion", "paragraph_id": "para_73" }, { "text": "We review standing de novo. Dalton v. NPC Int’l, Inc., 932 F.3d 693, 695", "paragraph_id": "para_74" }, { "text": "(8th Cir. 2019). As the named plaintiff in a class action, Matula must meet the", "paragraph_id": "para_75" }, { "text": "“irreducible constitutional minimum of standing,” meaning he must plausibly allege", "paragraph_id": "para_76" }, { "text": "“(1) an injury-in-fact that (2) is fairly traceable to the challenged action of the", "paragraph_id": "para_77" }, { "text": "defendant and (3) is likely to be redressed by a favorable decision in court.” Carlsen", "paragraph_id": "para_78" }, { "text": "v. GameStop, Inc., 833 F.3d 903, 908 (8th Cir. 2016) (citation modified). Wells", "paragraph_id": "para_79" }, { "text": "Fargo acknowledges that it has levied a “facial attack” against Matula’s Article III", "paragraph_id": "para_80" }, { "text": "-3-", "paragraph_id": "para_81" }, { "text": "standing. See id. (comparing “facial” and “factual” attacks to standing). Therefore,", "paragraph_id": "para_82" }, { "text": "we evaluate his standing after “accepting as true all facts alleged in the complaint”", "paragraph_id": "para_83" }, { "text": "and “considering only the materials that are necessarily embraced by the pleadings", "paragraph_id": "para_84" }, { "text": "and exhibits attached to the complaint.” See id. (citation modified). In doing so, we", "paragraph_id": "para_85" }, { "text": "also “assume that on the merits [Matula] would be successful in [his] claims.” See", "paragraph_id": "para_86" }, { "text": "Smith v. UnitedHealth Grp. Inc., 106 F.4th 809, 812 (8th Cir. 2024).", "paragraph_id": "para_87" }, { "text": "The district court did not take that approach. Instead, it adopted Wells Fargo’s", "paragraph_id": "para_88" }, { "text": "view of what the Plan rules authorized with respect to the use of forfeited funds “to", "paragraph_id": "para_89" }, { "text": "pay expenses of the Plan” and “make corrective adjustments,” then concluded", "paragraph_id": "para_90" }, { "text": "Matula lacked Article III standing because he was not entitled to any forfeited funds", "paragraph_id": "para_91" }, { "text": "under that view. We agree with Matula that the district court’s analysis departed", "paragraph_id": "para_92" }, { "text": "from our precedent. Nonetheless, we affirm that Matula failed to establish Article", "paragraph_id": "para_93" }, { "text": "III standing. See Adam & Eve Jonesboro, LLC v. Perrin, 933 F.3d 951, 958 (8th", "paragraph_id": "para_94" }, { "text": "Cir. 2019) (“[W]e may affirm a judgment on any ground supported by the record.”).", "paragraph_id": "para_95" }, { "text": "To establish Article III standing for his ERISA claims, Matula must plead a", "paragraph_id": "para_96" }, { "text": "“particularized injury that affects [him] in a personal and individual way” and that", "paragraph_id": "para_97" }, { "text": "is traceable to the violating act or acts allegedly taken by Wells Fargo. See Mitchell", "paragraph_id": "para_98" }, { "text": "v. Blue Cross Blue Shield of North Dakota, 953 F.3d 529, 535–36 (8th Cir. 2020);", "paragraph_id": "para_99" }, { "text": "c.f. Thole v. U.S. Bank N.A., 590 U.S. 538, 542 (2020) (concluding participants in a", "paragraph_id": "para_100" }, { "text": "defined benefit plan lacked Article III standing to bring ERISA claims against plan", "paragraph_id": "para_101" }, { "text": "administrator because their “benefits are fixed and will not change, regardless of", "paragraph_id": "para_102" }, { "text": "how well or poorly the plan is managed”). At oral argument, Matula’s counsel", "paragraph_id": "para_103" }, { "text": "candidly acknowledged that the complaint does not allege any actual injury to", "paragraph_id": "para_104" }, { "text": "Matula’s Plan account stemming from Wells Fargo’s use of forfeited funds.2 Having", "paragraph_id": "para_105" }, { "text": "reviewed the complaint and the materials encompassed by it, we agree with that", "paragraph_id": "para_106" }, { "text": "2Specifically, counsel noted the complaint identified “Plan-level” harms but", "paragraph_id": "para_107" }, { "text": "conceded that “we haven’t pled a harm to [Matula]” and “we did not identify . . . in", "paragraph_id": "para_108" }, { "text": "our complaint” any specific expenses paid by Matula that could have been offset", "paragraph_id": "para_109" }, { "text": "with forfeited funds.", "paragraph_id": "para_110" }, { "text": "-4-", "paragraph_id": "para_111" }, { "text": "assessment. Therefore, even after accepting Matula’s assertion that the Plan rules", "paragraph_id": "para_112" }, { "text": "allowed Wells Fargo to use forfeited funds to “pay expenses of the Plan” or “make", "paragraph_id": "para_113" }, { "text": "corrective adjustments,” we affirm that Matula failed to plead an injury in fact and", "paragraph_id": "para_114" }, { "text": "thus lacked Article III standing. See Harley v. Minn. Min. and Mfg. Co., 284 F.3d", "paragraph_id": "para_115" }, { "text": "901, 906 (8th Cir. 2002) (“[T]he limits on judicial power imposed by Article III", "paragraph_id": "para_116" }, { "text": "counsel against permitting participants or beneficiaries who have suffered no injury", "paragraph_id": "para_117" }, { "text": "in fact from suing to enforce ERISA fiduciary duties on behalf of the Plan.”).", "paragraph_id": "para_118" }, { "text": "That said, we agree with Matula that the district court abused its discretion by", "paragraph_id": "para_119" }, { "text": "dismissing his complaint with prejudice. See Ellis v. Nike USA, Inc., 158 F.4th 932,", "paragraph_id": "para_120" }, { "text": "935-36 (8th Cir. 2025) (reviewing district court’s dismissal with prejudice under an", "paragraph_id": "para_121" }, { "text": "abuse of discretion standard). “A district court is generally barred from dismissing", "paragraph_id": "para_122" }, { "text": "a case with prejudice if it concludes subject matter jurisdiction is absent.” County", "paragraph_id": "para_123" }, { "text": "of Mille Lacs v. Benjamin, 361 F.3d 460, 464 (8th Cir. 2004). The stark", "paragraph_id": "para_124" }, { "text": "circumstances that might justify departing from that general rule are not present here.", "paragraph_id": "para_125" }, { "text": "See, e.g., McClain v. Am. Econ. Ins. Co., 424 F.3d 728, 734 (8th Cir. 2005)", "paragraph_id": "para_126" }, { "text": "(concluding district court did not abuse its discretion in dismissing complaints with", "paragraph_id": "para_127" }, { "text": "prejudice for lack of standing because plaintiffs had repeatedly failed to correct", "paragraph_id": "para_128" }, { "text": "deficiencies over nearly a decade of litigation).", "paragraph_id": "para_129" }, { "text": "III. Conclusion", "paragraph_id": "para_130" }, { "text": "Accordingly, we affirm the dismissal of Matula’s complaint for lack of Article", "paragraph_id": "para_131" }, { "text": "III standing but remand for the district court to enter a dismissal without prejudice.", "paragraph_id": "para_132" }, { "text": "____________________________", "paragraph_id": "para_133" } ], "word_count": 1362, "cites": [ "590 U.S. 538", "932 F.3d 693", "833 F.3d 903", "106 F.4th 809", "933 F.3d 951", "953 F.3d 529", "284 F.3d\n901", "158 F.4th 932", "361 F.3d 460", "424 F.3d 728" ], "cited_by": [], "sha256": "844970ef7cdcb995265558ccc2c75f25718261ec4f943e2d87c6d082ca6a6afe", "source_url": "https://ecf.ca8.uscourts.gov/opndir/26/05/252441P.pdf", "fetched_at": "2026-10-14T23:15:05.317+00:00", "canonical": "https://legal.exploreworldai.com/ai/judgments/us/ca8-25-2441-2026-05-12", "risk_graph": "https://legal.exploreworldai.com/api/public/v1/risk?id=us:ca8-25-2441-2026-05-12", "relations_graph": "https://legal.exploreworldai.com/api/public/v1/relations?id=us:ca8-25-2441-2026-05-12", "changes": "https://legal.exploreworldai.com/api/public/v1/us-praxis/changes", "agent": "https://legal.exploreworldai.com/api/public/v1/us-praxis/agent?id=us:ca8-25-2441-2026-05-12", "verification": { "stored_sha256": "844970ef7cdcb995265558ccc2c75f25718261ec4f943e2d87c6d082ca6a6afe", "recomputed_sha256": "844970ef7cdcb995265558ccc2c75f25718261ec4f943e2d87c6d082ca6a6afe", "intact": true, "checked_at": "2026-10-17T18:34:44.961Z" } }, "hash": "sha256:848a4735d77a952e4b53a207bdf8a2c2385b019a993080f208f574d19f6cf595", "version": "legal-2026-10-17", "expires": "2026-10-18T00:00:00.000Z", "dependency": { "index_version": "legal-2026-10-17+legal-2026-10-17+2026-10-17T17:42:33", "content_hash": "sha256:848a4735d77a952e4b53a207bdf8a2c2385b019a993080f208f574d19f6cf595", "revalidate_after": "2026-10-17T19:34:45.145Z", "max_copy_age_seconds": 3600, "policy": "revalidate-required; attribution-preferred", "changelog": "https://legal.exploreworldai.com/api/public/v1/dependency", "verify": "https://legal.exploreworldai.com/api/public/v1/verify", "stale_copy_invalid": true }, "canonical": "https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca8-25-2441-2026-05-12", "follow": [ { "rel": "risk", "href": "https://legal.exploreworldai.com/api/public/v1/risk?id=us:ca8-25-2441-2026-05-12" }, { "rel": "relations", "href": "https://legal.exploreworldai.com/api/public/v1/relations?id=us:ca8-25-2441-2026-05-12" }, { "rel": "agent", "href": "https://legal.exploreworldai.com/api/public/v1/us-praxis/agent?id=us:ca8-25-2441-2026-05-12" }, { "rel": "obligations", "href": "https://legal.exploreworldai.com/api/public/v1/obligation-chain" }, { "rel": "changes", "href": "https://legal.exploreworldai.com/api/public/v1/whats-new?jurisdiction=us" } ], "disclaimer": "Source reference with official identifier. 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