WLTH NOTE: Wealthfront Corporation Faces Securities Investigation Due to CEO Disclosure, Investors that Lost Money Urged to Contact BFA Law
FiscalNoteFiscalNote(US:NOTE) TMX Newsfile·2026-01-23 11:33

Core Viewpoint - Wealthfront Corporation is under investigation for potential violations of federal securities laws, particularly concerning misleading statements made during its IPO process [1][3]. Group 1: Company Overview - Wealthfront is an online financial advisor that utilizes automated tools to provide investment and financial advice [2]. - The company completed its initial public offering (IPO) on December 12, 2025, offering over 34 million shares at a price of $14.00 per share [2]. Group 2: Financial Performance - On January 12, 2026, Wealthfront reported its first quarterly results as a public company, revealing net deposit outflows of $208 million, a significant decline from the $874 million inflows during the same period the previous year [4]. - CEO David Fortunato attributed the decline in deposits to falling interest rates and highlighted the strategic importance of Wealthfront's new home-lending business [4]. Group 3: Stock Market Reaction - Following the earnings report, Wealthfront's stock price dropped by $2.12 per share, nearly 17%, from a closing price of $12.59 on January 12, 2026, to $10.47 on January 13, 2026 [4].