Workday Shares Tumble 3.49% on Surge in $1.05 Billion Volume Ranking 125th as Court Expands AI Hiring Lawsuit

On July 31, 2025, Workday (WDAY) closed at $229.38, down 3.49% from the previous day’s close. The stock traded a volume of $1.05 billion, a 233.84% increase from the prior day, ranking 125th in trading activity across the market. A U.S. court in the Northern District of California ruled that Workday must provide a comprehensive list of customers who enabled its HiredScore AI hiring tool, expanding a collective action lawsuit. The judge rejected Workday’s argument that the HiredScore AI features were distinct from its Candidate Skills Match algorithm, emphasizing that the plaintiff’s case should include all candidates affected by the AI scoring system. The ruling adds regulatory scrutiny to Workday’s AI-driven hiring solutions amid broader debates over AI ethics in employment, particularly in cities like New York, which has already implemented AI hiring regulations.

Workday faces logistical challenges in identifying affected users, as noted in prior filings, but the court deemed these hurdles manageable. The company must submit the customer list by August 20. The lawsuit highlights growing legal and regulatory scrutiny of AI tools in HR, with California and Colorado planning AI hiring regulations by 2026. Workday’s defense that HiredScore operates on a separate technology platform may not shield it from liability, as the court emphasized the tool’s integration into hiring processes. This case could set a precedent for how AI-related claims are handled in employment law, particularly for SaaS providers offering automated decision-making tools.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to July 30, 2025, outperforming the benchmark by 137.53%. This outperformance underscores the potential of high-liquidity stocks to capture short-term momentum, though it does not reflect Workday’s specific performance in this period.