Wells Fargo & Co. has agreed to pay an $85 million settlement to resolve a class-action lawsuit accusing the banking giant of staging fake job interviews with minority and female candidates to bolster its diversity statistics rather than genuinely hiring diverse talent.
The case, filed by SEB Investment Management on behalf of shareholders, alleged that Wells Fargo misled the public and investors by engaging in performative diversity practices that violated anti-discrimination and securities laws.
The settlement, approved in principle on October 15, 2025, concludes years of scrutiny into the bank’s hiring practices between February 2021 and June 2022.
Allegations of “Window-Dressing” Diversity
The controversy began after reports surfaced that managers were directed to conduct “diversity interviews” with women and minority candidates for positions that had already been filled. The practice, according to internal whistleblowers, was meant to create the illusion of compliance with corporate diversity initiatives.
One former Wells Fargo executive, Joe Bruno, told The New York Times that the fake interviews were “inappropriate, morally wrong, and ethically wrong.” Bruno was fired in 2021, with the bank claiming his termination stemmed from “combative behavior.” However, other employees corroborated his account, saying they too were instructed to interview diverse applicants for positions no longer available.
Legal and Ethical Fallout
Plaintiffs in the class-action suit accused the company of misleading shareholders about its commitment to equitable hiring and diversity representation, arguing that the sham interviews violated both employment discrimination laws and securities disclosure obligations.
Wells Fargo initially moved to dismiss the lawsuit in 2023, but a California federal court denied the motion, finding that the plaintiffs had raised credible claims of deceptive corporate conduct.
Despite agreeing to pay $85 million, the bank continues to deny any wrongdoing, maintaining that it settled only to avoid “the financial toll and distraction of prolonged litigation.”
“We believe the claims were without merit,” the bank said in a statement. “Wells Fargo does not tolerate discrimination in any part of our business. We are pleased to have reached a settlement.”
Settlement Terms and Eligibility
Under the settlement agreement, shareholders who held Wells Fargo stock between February 24, 2021, and June 9, 2022, will be eligible to receive compensation once attorney fees, expenses, and taxes are deducted from the settlement fund. The case marks one of the most significant shareholder settlements related to corporate diversity misrepresentation in recent years.
The Larger Picture: Performative Diversity Under Fire
Legal analysts say the Wells Fargo case underscores the growing legal risks of “performative diversity”—corporate actions that prioritize optics over outcomes. While diversity, equity, and inclusion (DEI) programs have become standard across corporate America, falsely inflating diversity compliance can amount to both employment discrimination and securities fraud when misrepresented to investors.
“This case is a reminder that diversity isn’t a box to check,” said one employment law expert. “When corporations treat inclusion as a PR strategy instead of a core value, they not only betray the public trust but expose themselves to enormous legal liability.”
The settlement follows a string of scandals that have plagued Wells Fargo in the last decade, including fake account openings, mortgage discrimination lawsuits, and whistleblower retaliation claims, all of which have damaged its reputation as one of America’s largest banking institutions.
As the bank pledges to “improve its hiring process and ensure fair opportunities for all,” many observers remain skeptical that a check — even one worth $85 million — can repair years of systemic mistrust and reputational damage.
