Legal News

Former Wells Fargo Employees File Class Action Lawsuit in California
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Screen Shot 2016-09-09 at 5.42.53 PM

Summary: A class action lawsuit against Wells Fargo was filed in California last Thursday. 

The public’s compounding interest in the Wells Fargo fraud case is growing. Now, two former employees are fighting back against the bank’s top brass in a way they’d likely understand, by targeting their deep pocketbooks.


The former employees, Alexander Polonsky and Brian Zaghi, filed a $2.6 billion class action lawsuit against Wells Fargo. They said that the bank forced workers to meet aggressive sales quotas, and that people were demoted or fired if they were unable to meet those quotas because they refused to engage in fraud.

The lawsuit was filed in California last Thursday. It affects Californian Wells Fargo employees who worked at the chain any time in the past ten years. It alleges wrongful termination, unlawful business practices, and failure to pay overtime and wages.

The lawsuit stated that while honest employees were punished, those who engaged in fraudulent practices to meet quotas were promoted. The lawsuit added that the bank knew a lot of accounts were opened illegally but looked the other way because their stock price increased.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Polonsky and Zaghi said that bank managers pressured employees to open 10 accounts a day and required constant progress reports. The lawsuit said that executives at the top benefited from this high-pressure sales environment, but the low-level $12/hour employees suffered, often being reprimanded or working off the clock to meet quotas.

The Wells Fargo fraud scheme came to light in early September when the Consumer Financial Protection Bureau (CFPB) ordered the big bank to pay $185 million to settle allegations that their employees had created millions of fake accounts to meet sales quotes.

The federal bureau had learned that since 2011, over 5,000 employees had created 2 million accounts using real consumers’ data but without obtaining permission. The employees moved around consumers’ money into these phony accounts, and this often led to late fees and overdraft charges.

Before the scandal, the bank was estimated to be worth $300 billion. It was well known for its ability to “cross-sell” to its customers. Cross-selling is the practice of getting people to open multiple accounts with one bank such as a checking account and a credit card.

Recently, a video of Senator Elizabeth Warren admonishing Wells Fargo CEO John Stumpf for the fraud scheme went viral. She stated that he should face criminal charges and that he had shifted the blame to low-level employees. The bank has already fired 5,300 employees for fraud over the years, but top level leadership has not been removed.

What do you think will happen with this lawsuit? Let us know in the comments below.

Source: The Daily Mail


Interesting Legal Sites You May Like




Search Now

Corporate, Mergers and Acquisitions and Securities Associate Attorney

USA-NY-New York City

New York City office of our client seeks corporate, mergers and acquisitions and securities associat...

Apply Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Union-Side Labor Law and Employee Benefits Associate Attorney


Honolulu office of our client seeks union-side labor law and employee benefits associate attorney wi...

Apply Now


Associate - Mid-Level - GL Group


Defense firm seeking mid-level associate for Westchester office to fill General Liability position. ...

Apply now

Mortgage Compliance Analyst


Job Description: Rubicon Mortgage Advisors LLC, a locally-owned, boutique mortgage lender is seeki...

Apply now

Litigation Legal Assistant

USA-CA-Los Angeles

Qualifications: Candidate should have 2+ years of previous experience supporting multiple atto...

Apply now

Litigation Legal Assistant (10+ Years Experience)

USA-CA-Los Angeles

Qualifications: Candidate should have 10+ years of previous experience supporting multiple att...

Apply now


To Top