SEC joins DOJ in probe of Wells Fargo diversity hiring practices
The news for Wells Fargo related to alleged sham interviews of minority job candidates continues to worsen, with the bank disclosing that the Securities and Exchange Commission (SEC) has joined federal prosecutors in examining the issue.
In a quarterly filing released Monday, Wells Fargo disclosed that the SEC has undertaken “formal or informal inquiries or investigations regarding the company’s hiring practices related to diversity.” Wells Fargo announced in August that the Department of Justice is also investigating its hiring practices.
In the same filing, Wells Fargo disclosed more shareholders have joined a class-action lawsuit that alleges the company and some executive officers made “false or misleading statements” about hiring practices related to diversity. The shareholders claim the value of their stock was artificially inflated because of the actions of bank executives related to the company’s handling of its diverse candidate hiring policy.