But Wells Fargo, with "the knowledge and approval of the other Defendants," used that dividend income for its own purposes, meaning the 401(k) plan essentially paid for dividends that it did not and would not receive since the bank used the income to satisfy its own contribution obligations, the lawsuit alleges. "Defendants knew Wells Fargo was diverting dividend income from the Plan and therefore caused the Plan to pay more than fair market value each time it acquired Preferred Stock because the fair market value agreed to by GreatBanc, Wells Fargo, and [CEO Timothy J. Sloan] included a future stream of dividend payments which they knew would not be received by the Plan or used for the benefit of the participants and beneficiaries, but instead would be diverted to defray Well Fargo's obligation to make matching contributions to the Plan." By causing 401(k) plan participants to pay higher than the fair market value for preferred stock, the plan took on liabilities, the employee stock ownership plan notes, that "exceeded the fair market value of the principal on those notes," the filing says.