Led by Lead Plaintiff SEB Asset Management AB, this securities fraud class action arose out of Wells Fargo’s alleged misrepresentations and omissions regarding its diversity hiring initiative, the Diverse Search Requirement. According to Wells Fargo, the Diverse Search Requirement mandated that for virtually all United States job openings at Wells Fargo that paid $100,000 a year or more, at least half of the candidates interviewed for an open position had to be diverse (which included underrepresented racial or ethnic groups, women, veterans, LGBTQ individuals, and those with disabilities). SEB, along with additional plaintiff West Palm Beach Firefighters’ Pension Fund, alleged that, in reality, Wells Fargo was conducting “fake” interviews of diverse candidates simply to allow the Company to claim compliance with the Diverse Search Requirement.
After overcoming Defendants’ motion to dismiss, Plaintiffs successfully moved for class certification, completed fact and expert discovery, and completed briefing on dispositive motions. With a trial in early 2026 fast approaching and on the eve of the parties’ summary judgment oral argument, a settlement was reached for $85 million in cash. That settlement is subject to preliminary and final approval by the Court.