NEW YORK, June 28, 2022 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) and certain of its officers. The class action, filed in United States District Court for the Northern District of Californiaand registered under number 22-cv-03811, is on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired shares of Wells Fargo common stock between February 24, 2021 and June 9, 2022both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a). ) of the Securities Exchange Act of 1934 (the “Exchange Act”) and rule 10b-5 promulgated thereunder, against the Company and certain of its principal officers.
If you are a shareholder who purchased or otherwise acquired shares of Wells Fargo common stock during the Class Period, you have until August 29, 2022 ask the court to name you as the lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those applying by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
well Fargo is a diversified financial services company that provides banking, investment, mortgage, consumer and commercial finance products and services in the United States and around the world.
In 2020, Wells Fargo expanded its so-called “diverse search requirement,” also known as a diverse hiring policy, requiring that at least 50% of interview candidates must represent a historically underrepresented group with respect to at least minus one dimension of diversity (including race/ethnicity, gender, LGBTQ, veterans, and persons with disabilities) for most U.S. job postings with total direct compensation greater than $100,000 per year. Additionally, at least one recruiting panel interviewer must represent a historically underrepresented group with respect to at least one dimension of diversity.
he Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Wells Fargo misrepresented its commitment to diversity in the Company’s workplace; (ii) Wells Fargo conducted fake job interviews in order to meet its diverse search requirement; (iii) the foregoing conduct has subjected Wells Fargo to increased risk of regulatory and/or governmental scrutiny and enforcement action, including criminal charges; (iv) any of the foregoing, when disclosed, could adversely impact Wells Fargo’s reputation; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On May 19, 2022the New York Times published an article titled “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 Brunoa former executive in the firm’s wealth management division, the article reported, in relevant part, that “[f]or many vacancies, employees would audition for a ‘diverse’ candidate,” but that “often the so-called diverse candidate would audition for a position that had already been promised to someone else.” The article further reports that Mr. Bruno was fired after “complaining[ing] to his bosses” about the practice.
At this news, Wells Fargo’s common stock price plummeted. $0.44 per share, or 1.04%, over two trading sessions, closing at $41.67 per share on May 202022.
On June 6, 2022, Reuters published an article titled “Wells Fargo Suspends Diverse Hiring Policy After Reports of Fake Job Interviews”. The article reported that “Wells Fargo[…]pauses a hiring policy that requires recruiters to interview a diverse pool of candidates, after the New York Times reported that these interviews were often bogus and conducted even though the job had already been promised to someone else.” The same article also reported that “[t]he bank also plans to revise its various slate guidelines, chief executive Charles Schaff told staff on Monday, according to a memo seen by Reuters.”
Then, on June 9, 2022the New York Times published an article titled “Federal Prosecutors Open Criminal Investigation into Wells Fargo Hiring Practices”. The article reports that federal prosecutors are investigating whether Wells Fargo violated federal laws by conducting fake job interviews to meet the company’s diverse search requirements. The article also revealed that since the New York Times‘ May 19, 2022 article focusing on the bank’s wealth management business, “10 other current and former employees shared stories of how they were subjected to, or conducted, fake interviews, or saw documents documenting the practice “, and that “mock interviews took place across multiple lines of business, including its mortgage services, home lending and retail banking operations.”
On the same day, Wells Fargo issued a press release titled “Wells Fargo’s Response to New York Times article”, which confirmed that “[e]earlier this week, the [C]ompany has temporarily suspended the use of its various slate guidelines, “and that, “[d]During this break, the [C]The company conducts a review so that hiring managers, senior executives and recruiters fully understand how the guidelines should be implemented – and so that we can be confident that our guidelines deliver what they promise. »
Following these revelations, Wells Fargo’s common stock price plummeted $3.68 per share, i.e. 8.62%, over the next two trading sessions, closing at $38.99 per share on June 132022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Parisand Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP