Wells Fargo Reaches Agreement with U.S. Department of Labor Related to Legacy 401(k) Plan Matter
September 12 2022 - 9:25AM
Business Wire
Wells Fargo announced today that it has reached an agreement
with the U.S. Department of Labor (DOL) to resolve a previously
disclosed, legacy matter regarding the DOL’s review of transactions
that were used to fund certain Company contributions to its 401(k)
Plan. The Company strongly disagrees with the DOL’s allegations and
believes it followed applicable laws in conducting the
transactions. Though the Company disagrees with the DOL’s
allegations and has not conducted these transactions since 2018,
Wells Fargo believes resolving this legacy matter is in the best
interest of the Company.
All 401(k) Plan participants received all matching and
profit-sharing contributions due to them. An independent
third-party approved the transactions on behalf of the 401(k) Plan
and confirmed that the 401(k) Plan did not pay more than fair
market value for the Company stock at issue.
The agreement provides that the Company will pay approximately
$13.2 million to the DOL and approximately $131.8 million to
eligible current and former 401(k) Plan participants. As part of
the settlement, the Company also agreed to redeem certain preferred
securities held by the Company’s 401(k) Plan in exchange for shares
of the Company’s common stock.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial
services company that has approximately $1.9 trillion in assets,
proudly serves one in three U.S. households and more than 10% of
small businesses in the U.S., and is a leading middle market
banking provider in the U.S. We provide a diversified set of
banking, investment and mortgage products and services, as well as
consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth &
Investment Management. Wells Fargo ranked No. 41 on Fortune’s 2022
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health, and a
low-carbon economy. News, insights, and perspectives from Wells
Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com |
Twitter: @WellsFargo.
News Release Category: WF-CF
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version on businesswire.com: https://www.businesswire.com/news/home/20220906005687/en/
Media Beth Richek, 704-374-2545
Beth.Richek@wellsfargo.com
Investor Relations John Campbell, 415-396-0523
john.m.campbell@wellsfargo.com
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