Wells Fargo agreed to pay $145 million to end a Department of Labor investigation into alleged malpractice with employees' 401(k) retirement accounts.
People walk past a bank branch.
According to the Department of Labor, current and former employees of Wells Fargo overpaid in their 401(k) accounts.
According to the company and federal government, Wells Fargo will pay about $138 million to affected individuals and about $11.2 million to the Department of Labor.
In a release, Wells Fargo said it disagreed with the DOL's allegations and believed it followed applicable laws in conducting the transactions.
Wells Fargo disclosed the federal investigation into its 401(k) practices in February, and the company's stock rose.6% in Monday morning trading.
In February 2020, Wells Fargo agreed to pay $3 billion to federal regulators to resolve all criminal and civil cases related to the bank opening millions of accounts for customers without their knowledge or permission. John Stumpf, the former CEO of Wells Fargo, was banned from working at a bank again by the federal government for his role in the scandal, and he agreed to pay a fine to the Securities and Exchange Commission. Wells Fargo was fined $250 million by the Office of the Comptroller of the Currency. In April, Wells Fargo agreed to pay over 30 million dollars to settle a class action lawsuit.
The price of Wells Fargo's fake account scandal is growing.
The number of unauthorized accounts has increased to 3.5 million.
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