Block & Leviton Investigates Wealthfront for Potential Violations

Written by Emily J. Thompson, Senior Investment Analyst

Source: Globenewswire

Updated: Jan 27 2026

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WLTH+6.74%

Should l Buy WLTH?

Source: Globenewswire

Investor Losses: Wealthfront reported a staggering $208 million in net deposit outflows on January 13, a sharp decline from the previous year's $874 million inflows, leading to a more than 15% drop in share price, indicating a severe deterioration in financial health that could undermine investor confidence.
Legal Investigation Initiated: Block & Leviton is probing Wealthfront's disclosures during its IPO, particularly regarding the CEO's substantial personal stake in the new home lending business, which may involve securities law violations and could impact the company's future legal liabilities and reputation.
Investor Rights Protection: Any investor who has suffered losses in Wealthfront's stock is encouraged to contact Block & Leviton to explore legal avenues for recovery, demonstrating a commitment to safeguarding investor rights and interests.
Whistleblower Incentives: Block & Leviton is urging whistleblowers with non-public information to assist in the investigation, with potential rewards of up to 30% of any successful recovery, thereby enhancing oversight and transparency regarding potential violations.

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Analyst Views on WLTH

Wall Street analysts forecast WLTH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WLTH is 16.47 USD with a low forecast of 12.83 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

6 Analyst Rating

5 Buy

1 Hold

0 Sell

Strong Buy

Current: 8.160

Low

12.83

Averages

16.47

High

20.00

Current: 8.160

Low

12.83

Averages

16.47

High

20.00

Keefe Bruyette

Keefe

Outperform

initiated

$16.50

2026-01-06

Reason

Keefe Bruyette

Keefe

Price Target

$16.50

AI Analysis

2026-01-06

initiated

Outperform

Reason

Keefe Bruyette initiated coverage of Wealthfront with an Outperform rating and $16.50 price target, which implies 25% potential upside. The company offers exposure to "attractive secular growth themes" in financial technology around the compounding wealth of younger "digital native" generations, the analyst tells investors in a research note. Keefe believes this should support "durable" long-term growth for Wealthfront. As a digital only "robo advisory" platform, the company is better positioned than incumbents to serve this demographic, contends Keefe.

Goldman Sachs

James Yaro

Neutral

initiated

$14.50

2026-01-06

Reason

Goldman Sachs

James Yaro

Price Target

$14.50

2026-01-06

initiated

Neutral

Reason

Goldman Sachs analyst James Yaro initiated coverage of Wealthfront with a Neutral rating and $14.50 price target. The firm sees "structural growth" for the company, driven by demographic tailwinds and a "compelling" value proposition. However, Wealthfront faces nearer-term revenue headwinds from its interest rate sensitivity, the analyst tells investors in a research note.

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About WLTH

Wealthfront Corporation is a technology company that built a financial solutions platform for digital natives. Its platform is designed to address the needs of the wealth builders within these generations. Its technology-driven financial solutions help clients turn savings into long-term wealth. Its suite of products, including cash management, investment advisory, borrowing and lending, and financial planning solutions, address the diverse financial needs of its clients regardless of the economic environment. It offers financial products that span a risk spectrum, designed to be delivered through Web and mobile channels. It offers cash management, investment advisory, borrowing and lending, and financial planning. Its proprietary technology includes Omnibus Brokerage Platform, Fully Integrated Brokerage and Cash Management, Financial Data Aggregation, and Data and Analytics Platform. Its omnibus brokerage platform is the foundation for its investing and cash management solutions.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Faruqi & Faruqi Investigates Wealthfront Losses for Investors

1 day agoPRnewswire

Significant Stock Decline: Wealthfront's stock has plummeted 26.71% from its IPO price of $14.00 to $10.26 since December 12, 2025, indicating investor concerns over asset flows and strategic risks.
Investor Scrutiny: Following the company's first earnings release, disappointing asset inflow figures have pressured the stock, reflecting a slowdown in client acquisition and cash management balances that could impact future market performance.
Management Risk: Increased market scrutiny over the CEO's ownership stake in a banking partner related to the mortgage business has raised investor concerns about potential conflicts of interest and long-term integration risks, potentially affecting the company's reputation.
Legal Consultation Opportunity: Faruqi & Faruqi, LLP is investigating potential claims against Wealthfront and encourages investors who have suffered significant losses to contact them directly to discuss their legal rights and possible remedies.

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Bragar Eagel & Squire Investigates Potential Claims Against Wealthfront

4 days agoGlobenewswire

Investor Loss Investigation: Bragar Eagel & Squire is investigating whether Wealthfront violated federal securities laws after reporting a significant net deposit outflow of $208 million in Q3 2026, a stark contrast to $874 million in inflows during the previous year, potentially harming investor interests.
Deteriorating Financial Performance: The financial results released on January 12, 2026, indicated that the outflow was linked to a decline in interest rates, as noted by CEO David Fortunato, who emphasized the critical role of the newly launched home-lending business in addressing this trend, highlighting the company's financial challenges.
Significant Stock Price Drop: Following the earnings report, Wealthfront's stock price fell by $2.12, or 16.8%, closing at $10.47 per share on January 13, 2026, directly impacting investor asset values and reflecting market concerns about the company's future prospects.
Legal Consultation Opportunity: Bragar Eagel & Squire encourages all investors who purchased or held Wealthfront shares during this period to contact them to understand their legal rights and potential claims, demonstrating the firm's commitment to protecting investor interests.