Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
A proposed $2.6 billion class action lawsuit has been filed by two former Wells Fargo employees in California who say they were terminated after failing to meet unrealistic sales goals by opening up fake customer accounts.
Plaintiffs Alexander Polonsky and Brian Zaghi, two former Wells Fargo employees from Los Angeles, filed the lawsuit in California Superior Court on Thursday.
The pair allege that “Wells Fargo fired or demoted employees who failed to meet unrealistic quotas while at the same time providing promotions to employees who met these quotas by opening fraudulent accounts.”
The plaintiffs detail in their proposed class action lawsuit how certain employees were allegedly “coached” to secretly open fee-generating accounts and often resorted to using false customer contact information on accounts so they couldn’t be traced back, according to the complaint.
Specifically, Polonsky and Zaghi claim that Wells Fargo managers pressed workers to meet quotas of 10 accounts per day, required progress reports several times daily and reprimanded workers who fell short.
Polonsky and Zaghi filed applications matching customer requests and were counseled, demoted and later terminated, the lawsuit says.
“Without firing or demoting employees who failed to perpetuate the scam, Wells Fargo could not sufficiently ‘motivate’ or encourage those employees who met impossible quotas by taking fraudulent and illegal actions to increase ‘cross sells’ so that Wells Fargo’s stock price would double,” the complaint states.
Both Polonsky and Zaghi seek to represent California employees who worked at Wells Fargo in the past 10 years or who continue to work there and were fired, demoted or forced to resign due to not meeting their sales quotas.
It accuses Wells Fargo of wrongful termination, unlawful business practices and failure to pay wages, overtime, and penalties under California law.
“Wells Fargo’s fraudulent scam, which was set at the top and directed toward the bottom, was to squeeze employees to the breaking point so they would cheat customers so that the CEO could drive up the value of Wells Fargo stock and put hundreds of millions of dollars in his own pocket,” the lawsuit states. “Wells Fargo could then place the blame on thousands of $12-an-hour employees.”
According to a recent ABC News article detailing the review of a CFPB document, part of the banks’ alleged fake accounts generated approximately $2 million in fees, while a portion of the alleged fake credit card accounts generated about $400,000 in fees.
“The good employees with a conscience who tried to meet the sales quotas without engaging in fraudulent scams are the biggest victims,” the plaintiffs say. “They are the employees that this lawsuit seeks to redress.”
About 5,300 Wells Fargo employees were reportedly terminated in connection to the fake account allegations.
The California class action lawsuit seems to be just one of many legal problems Wells Fargo is facing over the purported scam to inflate sales metrics by creating fake bank and credit card accounts.
On Sept. 8, the Consumer Financial Protection Bureau (CFPB) fined the bank $100 million. It was also hit with fines from the Office of the Comptroller of the Currency for $35 million and the County and City of Los Angeles for another $50 million.
Wells Fargo also faces a hearing in the House, an investigation from the Department of Justice and was interrogated by the Senate Banking Committee last week.
On Monday, six former Wells Fargo employees filed a class action lawsuit in federal court against the bank seeking $7.2 billion for workers nationwide who were fired or demoted after refusing to open fake accounts.
The federal class action alleges Wells Fargo violated several laws, including Dodd-Frank and the section of Sarbanes-Oxley that prohibits retaliation against whistleblowers.
Moreover, the lawsuit claims Wells Fargo made employees work beyond eight hours a day without paying overtime, violating the Fair Labor Standards Act.
Both the California and federal class action lawsuits say Wells Fargo workers suffered damages including loss of income, back pay as well as “emotional distress” and “mental anguish.”
Additionally, on Sept. 19, three Utah residents filed the first customer class action lawsuit against Wells Fargo over allegations that bank accounts or credit cards were opened or applied for without customers’ knowledge or permission as part of the alleged scam.
Polonsky is represented by Jonathan Delshad of the Law Offices of Jonathan J. Delshad PC.
The Wells Fargo Fake Accounts Class Action Lawsuit is Alexander Polonsky v. Wells Fargo Bank & Company, Case No. BC634475, in the Superior Court of California, County of Los Angeles.
Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation
If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.
GET A FREE CASE EVALUATION NOW
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
17 thoughts onWells Fargo Class Action Filed Over Fraud-Related Firings
Just wanna know if i were a victim i ck my account on line and didnt wish to have paper bank statements sent by mail so when i get paid i get all my money tryn to get me to do bill pay….
Hello, Have you guys thought of looking at accounts such as Wells Brokerage, “margin” accounts. We have an account which was opened upon our account transfer from T. D. Ameritrade. There was no notification of the account or the crazy high interest rates that they charged.
There were weekly deductions made from the margin account charging 8% interest into our checking account paying roughly zero%.
We believe that the margin account was debited instead of our investment funds in order to keep more funds under mgt. charges and taking out of the margin account to create more income for Wells Fargo.
The bank should be watched very closely, as it appears to be pretty questionable.. Congress seems to think so, as do millions of their customers. This is our opinion. We hate to walk in the branch as does the customers above. thank you. Any help would be appreciated. We have as of today requested a transaction log on the account 4 or 5 times and have only received a vague summary.
How in the crap can Wells Fargo just ad a spouse to your account without your permission what happen to me and I had to go raise hell and they had the nerve to tell me he had to be there to sign papers to take him off but yet I didn’t sign or OK for the to put him on that’s bs we not even together scammers