Multiple Law Firms Open Probes Into Wealthfront After Deposit Reversal and CEO Stake Disclosure
The inquiries focus on whether Wealthfront misled investors in its IPO disclosures.
Overview
- Bleichmar Fonti & Auld, Block & Leviton, Holzer & Holzer, and Levi & Korsinsky announced investigations into potential securities law violations at Wealthfront.
- The actions follow January 12 results showing $208 million in net deposit outflows versus $874 million in inflows a year earlier.
- CEO David Fortunato disclosed personal ownership of 95.1% of the company's new home‑lending business and said the structure may be revisited.
- Wealthfront shares fell roughly 15–17% on January 13 after the disclosures and financial update.
- Firms are evaluating possible misstatements in IPO materials, soliciting investors with losses, and in one case encouraging whistleblower tips to the SEC, with no lawsuits filed to date.