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Wells Fargo diversity class action lawsuit review:
- Who: Plaintiff Khosrow Ardalan filed a class action lawsuit against Wells Fargo.
- Why: Wells Fargo allegedly misrepresented its commitment to diversity and conducted fake interviews of diverse applicants.
- Where: The Wells Fargo class action lawsuit was filed in California federal court.
Wells Fargo misrepresented its commitment to diversity in its workplace and conducted fake interviews to meet its Diverse Search Requirement in violation of the Exchange Act, according to a class action lawsuit filed June 28 in California federal court.
In 2020, Wells Fargo allegedly implemented a “Diverse Search Requirement” that required that at least half of its interview candidates would meet at least one measure of diversity, such as race and ethnicity, veterans, gender, LGBTQ, and disability, for U.S. jobs offering compensation of more than $100,000 per year.
The Diverse Search Requirement also required at least one interviewer on the hiring panel to represent one of these historically underrepresented groups.
NYT article about fake Wells Fargo interviews cause stock prices to drop, class action says
On May 19, The New York Times reportedly published an article reporting that Wells Fargo often conducted fake interviews for diverse candidates to satisfy the Diverse Search Requirement.
For example, Wells Fargo would reportedly interview “diverse” candidates but, in many cases, “the so-called diverse candidate would be interviewed for a job that had already been promised to someone else.”
After The New York Times article was published, Wells Fargo’s stock price dropped significantly, the class action says.
On June 9, The New York Times reported that federal prosecutors were investigating Wells Fargo to determine whether its fake diversity interviews violated federal law. The article also indicated that 10 current and former Wells Fargo employees had come forward with information about the fake diversity interviews.
Wells Fargo’s stock price plummeted 8.62% over the following two trading sessions, according to the Wells Fargo class action lawsuit.
In February 2021, Wells Fargo reportedly filed an annual report with the SEC that misrepresented its commitment to diversity, equity, and inclusion. The company continued to submit filings with the SEC and issue press releases confirming its commitment to diversity.
These misrepresentations allegedly subjected Wells Fargo to increased risk of regulatory scrutiny and potential criminal charges, which posed the risk of damaging Wells Fargo’s reputation and tanking its stock prices.
Plaintiff Khosrow Ardalan filed the Wells Fargo class action lawsuit on behalf of a Class of persons and entities who acquired Wells Fargo common stock between Feb. 24, 2021 and June 9, 2022.
Earlier this year, Black mortgage refinancing applicants sued Wells Fargo for allegedly disproportionately denying their applications during a period of historically low interest rates.
If Wells Fargo imposed an unfair overdraft fee on a debit card purchase, you may have a legal claim. Visit the Wells Fargo overdraft claim review page to find out if you qualify.
Ardalan is represented by Jennifer Pafiti and Jeremy A. Lieberman of Pomerantz LLP.
The Wells Fargo Diversity Class Action Lawsuit is Khosrow Ardalan v. Wells Fargo & Company, et al., Case No. 3:22-cv-03811, in the U.S. District Court for the Northern District of California.
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One thought on Wells Fargo class action says company faked diversity efforts when hiring
I had a Auto Loan with Wells Fargo and was charged 23% interest please add me for reimbursement