Wealthfront Investigation Overview
BFA is investigating whether Wealthfront violated the federal securities laws by making false and misleading statements to investors, including in the offering materials for its initial public offering. Investors may be able to file a class action to potentially recover losses.
If you lost money on your Wealthfront investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why is Wealthfront being investigated for Violations of the Federal Securities Laws
Wealthfront Corporation is being investigated for violations of the federal securities laws following a significant stock drop. The decline in Wealthfront’s stock price caused significant losses to investors.
Wealthfront is an online financial advisor that uses automated tools to provide investment and financial advice. On or around December 12, 2025, Wealthfront completed an IPO of more than 34 million shares of common stock at a price of $14.00 per share.
Why did Wealthfront’s Stock Drop?
On January 12, 2026, Wealthfront published its first quarterly results as a publicly traded company. The results included net deposit outflows of $208 million, a stark reversal from the $874 million in inflows the company experienced during the same period a year earlier. During the company’s earnings conference call held the same day, CEO David Fortunato attributed the decline to falling interest rates and emphasized the strategic importance of Wealthfront’s new home-lending business which he asserted would protect the company from downside risk should interest rates continue to fall. Also on the call, Fortunato revealed that he personally owns a 95.1% stake in Wealthfront’s home-lending business and that the company may “revisit or revise the ownership structure.”
This news caused the price of Wealthfront stock to drop $2.12 per share, nearly 17%, from a closing price of $12.59 per share on January 12, 2026, to $10.47 per share on January 13, 2026.
How Do I Submit My Information?
If you lost money when Wealthfront securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
adam@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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