WELLS FARGO LAWSUIT ALERT: Kaplan Fox & Kilshiemer LLP Notifies WELLS FARGO Investors of a Class Action Lawsuit and Upcoming Deadline

NEW YORK, Aug. 16, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC). A complaint has been filed on behalf of investors who purchased Wells Fargo common stock between February 24, 2021 and June 9, 2022, inclusive (the “Class Period”).

If you purchased or otherwise acquired Wells Fargo common stock during the Class Period and would like to discuss our investigation, please contact us by emailing [email protected] or by calling (646) 315-9003.

If you are a member of the proposed Class, you may move the court August 29, 2022 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery. 

According to the complaint in 2020, Wells Fargo expanded its so-called “Diverse Search Requirement,” also referred to as a diverse slate hiring policy, requiring that at least 50% of interview candidates must represent a historically underrepresented group with respect to at least one diversity dimension (including race/ethnicity, gender, LGBTQ, veterans, and people with disabilities) for most posted roles in the U.S. with total direct compensation greater than $100,000 per year. In addition, at least one interviewer on the hiring panel must represent a historically underrepresented group with respect to at least one diversity dimension.

On May 19, 2022, the New York Times published an article entitled “At Wells Fargo, a Quest to Increase Diversity Leads to Fake Job Interviews.” Citing discussions with “seven current and former Wells Fargo employees,” including Joe Bruno, a former executive in the Company’s wealth management division, the article reported, in relevant part, that “[f]or many open positions, employees would interview a ‘diverse’ candidate,” but that “often, the so-called diverse candidate would be interviewed for a job that had already been promised to someone else.” The article further reported that Mr. Bruno was fired after “complain[ing] to his bosses” about the practice.

According to the complaint, on this news, the price of Wells Fargo common stock fell $0.44 per share, or 1.04%, over two trading sessions, closing at $41.67 per share on May 20, 2022.

On June 6, 2022, Reuters published an article entitled “Wells Fargo pauses diverse slate hiring policy after reports of fake job interviews.” The article reported that “Wells Fargo . . . is pausing a hiring policy that requires recruiters to interview a diverse pool of candidates, after the New York Times reported such interviews were often fake and conducted even though the job had already been promised to someone else.”

Then, on June 9, 2022, the New York Times published an article entitled “Federal Prosecutors Open Criminal Inquiry of Wells Fargo’s Hiring Practices.” The article reported that federal prosecutors are investigating whether Wells Fargo violated federal laws by conducting fake job interviews in order to meet the Company’s Diverse Search Requirement. The article also revealed that, since the New York Times‘ May 19, 2022 article focusing on the bank’s wealth management business, “another 10 current and former employees have shared stories about how they were subject to fake interviews, or conducted them, or saw paperwork documenting the practice,” and that “sham interviews occurred across multiple business lines, including its mortgage servicing, home lending and retail banking operations.” According to the complaint, Wells Fargo then issued a press release the same day entitled “Wells Fargo response to New York Times article,” which confirmed that “[e]arlier this week, the [C]ompany temporarily paused the use of its diverse slate guidelines,” and that, “[d]uring this pause, the [C]ompany is conducting a review so that hiring managers, senior leaders and recruiters fully understand how the guidelines should be implemented – and so we can have confidence that our guidelines live up to their promise.”

According to the complaint, following these disclosures, Wells Fargo’s common stock price fell $3.68 per share, or 8.62%, over the following two trading sessions, closing at $38.99 per share on June 13, 2022.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

WHY CONTACT KAPLAN FOX – Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.

If you have any questions about this Notice, your rights, or your interests, please contact: 

Donald R Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: [email protected]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: [email protected]

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