WELLS FARGO & COMPANY SHAREHOLDERS MAY HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Wells Fargo & Company
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) common stock between February 24, 2021 and June 9, 2022, inclusive. The lawsuit seeks to recover Wells Fargo shareholders’ investment losses.
If you purchased common stock in Wells Fargo & Company between February 24, 2021 and June 9, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Wells Fargo is a diversified financial services company that provides banking, investment, mortgage, and consumer and commercial finance products and services.
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 this news, Wells Fargo’s common stock price fell $0.44 per share, or 1.04%, over two trading sessions, closing at $41.67 per share on May 20, 2022.
Then, 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.”
Finally, 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 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 issued a press release stating 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…”
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.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (i) Wells Fargo had 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 subjected Wells Fargo to an increased risk of regulatory and/or governmental scrutiny and enforcement action, including criminal charges; and (iv) all of the foregoing, once revealed, was likely to negatively impact Wells Fargo’s reputation.
If you wish to serve as lead plaintiff, you must move the Court no later than August 29, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.