LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz reminds investors of the upcoming August 29, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) common stock between February 24, 2021 and June 9, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On May 19, 2022, the New York Times published an article which alleged, among other things, that for many open positions, interviews were held with diverse candidates, but “that often, the so-called diverse candidate would be interviewed for a job that had already been promised to someone else.” The article also reported that the Company’s former executive in the wealth management division had been fired after complaining to his bosses about the practice.
On this news, Wells Fargo common stock fell $0.44, or 1%, over two trading sessions to close at $41.67 per share on May 20, 2022.
Then, on June 6, 2022, Reuters published an article reporting that, in response to the New York Times article, Wells Fargo paused its hiring policy that required recruiters to interview a diverse pool of candidates, and that it also planned to “conduct a review of its diverse slate guidelines.”
Then, on June 9, 2022, the New York Times reported that federal prosecutors were investigating whether Wells Fargo violated federal laws by conducting fake job interviews in order to meet its Diverse Search Requirement. The same day, Wells Fargo responded that it was “conducting a review so that hiring managers, senior leaders and recruiters fully understand how the guidelines should be implemented.”
On this news, Wells Fargo common stock fell $3.68, or 8.2%, over two trading sessions to close at $38.99 on June 13, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Wells Fargo had misrepresented its commitment to diversity in the Company’s workplace; (2) Wells Fargo conducted fake job interviews in order to meet its Diverse Search Requirement; (3) the foregoing conduct subjected Wells Fargo to an increased risk of regulatory and/or governmental scrutiny and enforcement action, including criminal charges; (4) all of the foregoing, once revealed, was likely to negatively impact Wells Fargo’s reputation; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Wells Fargo common stock during the Class Period, you may move the Court no later than August 29, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
