Wells Fargo And Its Shareholders Agree To Settle Federal Class-Action Lawsuit Regarding Its Hiring Practices Around DEI
Wells Fargo has settled a DEI lawsuit involving its hiring practices.
In 2022, The New York Times published an article detailing the experience of Joe Bruno, a former executive in Wells Fargo’s wealth management division. He claimed the bank giant would interview “diverse” candidates for open positions with no plans to actually extend an employment offer. Bruno voiced this observation to higher-ups, but was dismissed. He told the company the “fake interviews” were “inappropriate, morally wrong, ethically wrong.” per the New York Times.
In 2020, Wells Fargo added a policy that requires open roles earning $100,000 and higher to include diverse candidates, including people from underrepresented racial or ethnic groups, women, veterans, LGBTQ individuals, and people with disabilities.
Settlement Details
In 2022, SEB Investment Management AB filed a lawsuit on behalf of plaintiffs sharing similar concerns about Wells Fargo’s DEI hiring practices.
According to the Charlotte Observer, From February 2021 to June 2022, plaintiffs maintained that interviews with diverse candidates were performative. SEB Investment Management AB also said Wells Fargo deceived them about their DEI commitments in hiring, although the bank giant disagreed.
“We believe the claims were without merit. Wells Fargo does not tolerate discrimination in any part of our business” Wells Fargo said Wednesday in a statement shared with The Charlotte Observer.
Wells Fargo attempted to dismiss the case, but a California federal court struck it down in 2024.
On Sept. 15, the bank and its shareholders agreed to settle the federal class action lawsuit.
A court hearing about the settlement “in principle” is scheduled for November.
