A New York Times investigative article titled “At Wells Fargo, a Quest to Increase Diversity Leads to Fake Job Interviews” published on May 19, 2022, exposed a troubling practice within Wells Fargo’s wealth management division where managers conducted sham interviews with diverse candidates (primarily women and people of color) solely to meet internal diversity quotas and satisfy regulatory scrutiny, rather than to offer real job opportunities. These interviews were described as performative exercises to document “diversity efforts” on paper, even though the positions were often already filled or promised to non-diverse candidates.
According to the article seven current and former employees reported being instructed by bosses or HR to interview diverse candidates for roles that were pre-decided. The interviews were not intended to lead to hires but to create records showing compliance with diversity goals. Five other employees were aware of or assisted in arranging such interviews.
This stemmed from Wells Fargo’s aggressive push to increase diversity in its workforce, particularly in wealth management, following past scandals. The focus shifted to superficial metrics, such as the number of diverse candidates interviewed, to prepare for audits by regulators like the Federal Reserve.
Wells Fargo’s leadership, including CEO Charles Scharf, had publicly touted the bank’s diversity commitments. For instance, Scharf emphasized in 2021 that diversity was a priority, but the article highlighted a disconnect between these statements and on-the-ground practices.
Joe Bruno, a former managing director in wealth management who was fired in August 2021 after raising concerns, called the practice “inappropriate, morally wrong, ethically wrong.” He alleged his termination was retaliation for his complaints, though Wells Fargo claimed it was for unrelated reasons.
The bank denied tolerating such behavior, with spokeswoman Raschelle Burton stating in an email that Wells Fargo “expects all employees to follow our hiring policies and guidelines” and holds violators accountable. However, the article suggested the practice was widespread and informally encouraged. In a follow-up development noted in the article’s update, Wells Fargo announced a temporary “pause” on the policy that enabled these fake interviews, signaling some acknowledgment of the issue.
This exposé contributed directly to the shareholder lawsuit against Wells Fargo, as it revealed how misleading public statements about diversity progress allegedly inflated the stock price, leading to losses when the truth emerged.
The lead plaintiff was SEB Investment Management AB (a Swedish institutional investor). The case began with individual investor Khosrow Ardalan filing in June 2022, but after consolidation, SEB was appointed lead plaintiff. Ultimately the case became a certified class action representing all persons/entities who purchased or acquired Wells Fargo common stock between February 24, 2021, and June 9, 2022 (inclusive) and suffered damages.
The parties reached an $85,000,000 all-cash settlement in September 2025 (announced to the court on September 25, 2025), with no admission of wrongdoing by Wells Fargo. The federal court granted preliminary approval on November 13, 2025, finding the settlement fair, reasonable, and adequate under Rule 23(e). Final fairness hearing will be scheduled later (motion for final approval due April 28, 2026).