Wells Fargo to settle lawsuit alleging they held fake interviews as part of DEI hiring initiatives 

The bank has denied all claims but has agreed to a settlement “in principle” over the accusations of sham hiring practices.

Wells Fargo has agreed to settle a lawsuit alleging that the company misrepresented its DEI initiatives to increase the number of people from underrepresented groups in higher-paying jobs by holding fake interviews for jobs that were often already taken, according to The Charlotte Observer. No settlement terms have been finalized; the agreement is still being negotiated and expected to be submitted to the U.S. District Court for the Northern District of California by October 13 for approval. 

According to the lawsuit filed in September 2022, the plaintiffs allege that between February 2021 and June 2022, Wells Fargo effectively held fake, diversity-hire interviews for jobs that were already taken. Wells Fargo previously set a mandate that half of all jobs in the United States paying $100,000 or more would go to people from diverse and/or underrepresented groups, i.e., “racial or ethnic groups, women, veterans, LGBTQ+ individuals, and people with disabilities.”

The plaintiffs claim that while job interviews were held, they were all shams as Wells Fargo had no intention of filling those jobs with the diverse candidates. In September 2022, the SEC also raised concerns about the bank’s hiring practices. However, both the Department of Justice and the SEC closed their investigations into the bank without further action. 

Wells Fargo denies all the accusations and claims, stating that their hiring practices were above board. “We believe the claims were without merit. Wells Fargo does not tolerate discrimination in any part of our business.”

According to the bank’s DEI filing to the SEC in 2024, roughly 46 percent of the 238,000 employees were considered racially or ethnically diverse. However, in the wake of President Trump’s crackdown on DEI initiatives for all companies doing business with the federal government, Wells Fargo, like many other companies, dropped many of its references to DEI-related initiatives and goals. 

Wells Fargo, though, has maintained that it promotes an inclusive workplace.