A federal court judge in California has rejected Wells Fargo's attempt to dismiss a class-action lawsuit alleging the bank misrepresented its commitment to diversity, equity, and inclusion (DEI) in its hiring practices. The trial is scheduled for January 2026.
The lawsuit, filed by SEB Investment Management AB on behalf of plaintiffs in 2022, accuses Wells Fargo of conducting "sham" interviews for high-paying jobs, specifically those offering $100,000 or more annually. The plaintiffs claim these interviews were staged to meet the bank's DEI requirements, which mandated that at least half of the candidates for these positions be from diverse backgrounds, including underrepresented racial or ethnic groups, women, veterans, LGBTQ individuals, and people with disabilities. According to the plaintiffs, these interviews were "fake" and conducted despite a candidate already being selected for the job.
The controversy gained attention following a 2022 New York Times report, prompting investigations by the Securities and Exchange Commission (SEC) and the Justice Department. However, both agencies closed their investigations without taking action, according to Wells Fargo.
Judge Trina Thompson, in late July, denied Wells Fargo's motion to dismiss the case, citing the plaintiffs' claims, which include allegations of repeated false statements to the public and the use of sham interviews to meet DEI requirements. Wells Fargo, in response, stated that the "claims in this lawsuit have no merit" and reaffirmed its commitment to diversity, equity, and inclusion, declaring that it does not tolerate discrimination in any part of its business.
Wells Fargo has until August 23 to respond to the allegations. A final pretrial conference is set for November 13, 2025.
In its most recent DEI report, Wells Fargo highlighted that 46% of its 238,000 employees are racially and ethnically diverse. The bank emphasized its continued commitment to DEI, stating, "As a company, our approach has not changed."
This lawsuit is one of several legal challenges Wells Fargo has faced recently, including a $22.1 million award to a former employee in a disability discrimination case and a 2023 lawsuit from former CEO Tim Sloan seeking $30 million in compensation related to a previous scandal involving fake customer accounts.
Link: Charlotte Observer