Key Takeaways
- Wells Fargo will pay $85 million to settle claims of misleading diversity hiring practices.
- Another $100 million will fund mortgage aid for low-income communities.
- The case highlights issues in ethical hiring and organizational accountability.
- The bank denied wrongdoing but settled to reduce financial strain from litigation.
- Eligible shareholders from Feb. 2021–June 2022 may receive compensation.
Wells Fargo Settles Diversity Hiring Lawsuits Amid Ethical Concerns
Wells Fargo has agreed to pay $85 million to resolve a class-action lawsuit alleging that its diversity hiring policy led to “sham” interviews, according to HR Dive. The lawsuit claimed that managers interviewed diverse candidates for positions that were already filled, a violation of ethical hiring standards.
Former executive Joe Bruno described these practices as “ethically wrong,” The New York Times reported. Though Wells Fargo later terminated him, citing workplace conflict, other employees supported similar claims about questionable hiring conduct.
Legal Resolutions and Corporate Response
The settlement, alongside a separate case involving alleged executive misconduct, includes an additional $100 million commitment toward mortgage assistance for low- and moderate-income borrowers, according to court filings dated Oct. 13.
While Wells Fargo denied discrimination allegations, it said the settlement allows the company to “move forward” and minimize legal costs.
The case underscores the importance of ethical recruitment and diversity accountability, principles emphasized in SHRM certification standards.
For HR professionals preparing for SHRM-CP or SHRM-SCP exams, explore comprehensive study materials, practice assessments, and learning tools to strengthen your HR ethics and compliance knowledge.
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