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Wells Fargo has agreed to pay $85 million to settle a class-action lawsuit alleging the bank conducted "fake interviews" with “diverse” candidates, whom they had no intention of hiring, per AfroTech.
The lawsuit, filed by SEB Investment Management, claimed that between February 2021 and June 2022, the bank held the “fake interviews” to create an appearance of diversity in hiring.
Former executive Joe Bruno initially called out the practice as “inappropriate, morally wrong, ethically wrong." Bruno was fired for what Wells Fargo called "combative behavior" and not whistleblowing, but other employees supported his allegations.
“We believe the claims were without merit. Wells Fargo does not tolerate discrimination in any part of our business,” the company said in a statement.
A California federal court denied Wells Fargo’s motion to dismiss the case in 2023. The bank and its shareholders reached a settlement in the case last week. Though Wells Fargo maintains its innocence, it said the agreement avoids “the financial toll and burden of ongoing legal proceedings.”
“We are pleased to have reached a settlement,” Wells Fargo said in a statement.
Shareholders who held Wells Fargo stock between Feb. 24, 2021, and June 9, 2022 will be eligible for a portion of the settlement fund after fees, expenses, and taxes are deducted.
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