“Wells Fargo knew that their unreasonable quotas were driving these unethical behaviors that were used to fraudulently increase their stock price and benefit the CEO at the expense of the low-level employees. Although this policy was known to top executives of defendants, plaintiffs, as bankers, were blamed for harm to clients and retaliated against.”
Polonsky v. Wells Fargo Bank: Wells Fargo Sued for $26 Billion Over Firings for Missed Account Quotas
Wells Fargo & Co. managers were accused of fueling the creation of bogus accounts in what may be the first lawsuit by fired or demoted employees since the bank was called out by regulators.
The lawsuit offers details of how low-level bankers were allegedly pushed to create at least 10 new accounts a day in a sales initiative that has blown up into a scandal and prompted U.S. lawmakers to call for Chief Executive Officer John Stumpf’s resignation. Bankers were “coached” to secretly open fee-generating accounts and often resorted to using false customer contact information like NoName@WellsFargo.com on accounts so they couldn’t be traced back, according to the complaint.
The bank, according to the Los Angeles suit, rewarded employees with promotions for using tactics including “sandbagging” — opening fake accounts the day after a customer instructed the bank not to; “pinning” — assigning personal identification numbers without customer authorization; and “bundling” — lying to customers about limited availability of certain products in packages.
While Wells Fargo fired 5,300 employees that it blamed for opening accounts without client approval, the bankers who sued Thursday said the dishonest practices were orchestrated by Stumpf.
Copy of the complaint below…
Oh, and it looks like Wells Fargo is hiring/replacing employees if interested…
Polonsky v. Wells Fargo Bank