San Diego, CA -- (SBWIRE) -- 08/09/2022 -- An investor, who purchased shares of Wells Fargo & Company (NYSE: WFC), filed a lawsuit over alleged violations of Federal Securities Laws by Wells Fargo & Company.

Investors who purchased shares of Wells Fargo & Company (NYSE: WFC) have certain options and for certain investors are short and strict deadlines running. Deadline: Northern District of California. NYSE: WFC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

In 2020, Wells Fargo & Company 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.

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." The same article also reported that "[t]he bank also plans to conduct a review of its diverse slate guidelines, Chief Executive Officer Charles Scharf told staff on Monday, according to a memo seen by Reuters."

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."

That same day, Wells Fargo & Company issued a press release 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."

Shares of Wells Fargo & Company (NYSE: WFC) declined from $60.30 per share on February 10, 2022, to as low as $38.36 per share on June 23, 2022.

The plaintiff claims that between February 24, 2021 and June 9, 2022, the defendants made false and/or misleading statements and/or failed to disclose that Wells Fargo had misrepresented its commitment to diversity in the Company's workplace, that Wells Fargo conducted fake job interviews in order to meet its Diverse Search Requirement, that the foregoing conduct subjected Wells Fargo to an increased risk of regulatory and/or governmental scrutiny and enforcement action, including criminal charges; that all of the foregoing, once revealed, was likely to negatively impact Wells Fargo's reputation, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Wells Fargo & Company (NYSE: WFC) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Christopher Clausen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.