Wells Fargo was caught in a scandal where employees would create fake emails and secretly issue credit cards without the customer’s consent. Employees opened more than 1 million bank accounts and issued more than half a million credit cards. As a result Wells Fargo fired the suspected employees for opening accounts without authorization of the customer.
This led to employees to file “A class action in California seeking $2.6 billion or more for workers who tried to meet aggressive sales quotas without engaging in fraud and were later demoted, forced to resign or fired”. This lawsuit was on behalf of those employees terminated who did not engage in fraud and focused on following the rules to fulfill their quotas. A lawsuit was issued which …show more content…
This case is a civil matter because the employees claims that Wells Fargo has failed to carry out a legal duty owed to them. As mentioned employees were pressed by managers to meet quotas of 10 accounts a day and would reprimand people who fell short and award those taking part in the scam. This was the main cause as to why employees engaged in fraud. This is still a pending case between the wrongly fired employees, the plaintiff and Wells Fargo, the defendant. The people affected by this fraudulent behavior were employees, consumers and shareholders of the company. This unethical behavior drove their stock prices up which in turn benefited the CEO the most. Wells Fargo took responsibility for fraudulently opening accounts, by paying a large amount of …show more content…
Employees under these stressful situations will either make the choice of faking accounts or doing it normally to achieve the quota. The fact that employees have to keep up with a certain quota of getting accounts every day is bad. But the fact that employees involved in these scams are getting promoted is just wrong. And in this particular case, the employees who had a conscience and did not produce fraud were negatively impacted. They were punished, as mentioned by two former employees saying “they were terminated after failing to meet unrealistic sales goals of opening 10 accounts per day”. And this led to lawsuits and much similar to the case we did in class between Google and Reid. In this case Wells Fargo are being accused of encouraging these scams by promoting those who fulfilled their quotas and wrongfully firing those who were ethical and did not commit fraud. To conclude, I would like to say that this is to be expected in our world today since big businesses such as Wells Fargo must’ve done something unethical to get to this point. But that does not mean that what they did was okay, and Wells Fargo owes it to their employees for giving them such emotional stress. I believe that the employees were treated unfairly and they should be compensated as
This led to employees to file “A class action in California seeking $2.6 billion or more for workers who tried to meet aggressive sales quotas without engaging in fraud and were later demoted, forced to resign or fired”. This lawsuit was on behalf of those employees terminated who did not engage in fraud and focused on following the rules to fulfill their quotas. A lawsuit was issued which …show more content…
This case is a civil matter because the employees claims that Wells Fargo has failed to carry out a legal duty owed to them. As mentioned employees were pressed by managers to meet quotas of 10 accounts a day and would reprimand people who fell short and award those taking part in the scam. This was the main cause as to why employees engaged in fraud. This is still a pending case between the wrongly fired employees, the plaintiff and Wells Fargo, the defendant. The people affected by this fraudulent behavior were employees, consumers and shareholders of the company. This unethical behavior drove their stock prices up which in turn benefited the CEO the most. Wells Fargo took responsibility for fraudulently opening accounts, by paying a large amount of …show more content…
Employees under these stressful situations will either make the choice of faking accounts or doing it normally to achieve the quota. The fact that employees have to keep up with a certain quota of getting accounts every day is bad. But the fact that employees involved in these scams are getting promoted is just wrong. And in this particular case, the employees who had a conscience and did not produce fraud were negatively impacted. They were punished, as mentioned by two former employees saying “they were terminated after failing to meet unrealistic sales goals of opening 10 accounts per day”. And this led to lawsuits and much similar to the case we did in class between Google and Reid. In this case Wells Fargo are being accused of encouraging these scams by promoting those who fulfilled their quotas and wrongfully firing those who were ethical and did not commit fraud. To conclude, I would like to say that this is to be expected in our world today since big businesses such as Wells Fargo must’ve done something unethical to get to this point. But that does not mean that what they did was okay, and Wells Fargo owes it to their employees for giving them such emotional stress. I believe that the employees were treated unfairly and they should be compensated as