(CercleFinance.com) – Wells Fargo has agreed to repay more than $131.8 million as part of the out-of-court settlement of a case where the US bank was accused of overpaying for its own shares.
The agreement, concluded with the US Department of Labor, provides for the payment of these funds to the beneficiaries of a retirement plan offered to employees of the Californian establishment.
In this case, the US administration accused Wells Fargo and its fiduciary manager, GreatBanc, of having overpaid, over a period from 2013 to 2018, the Wells Fargo shares that made up this staff retirement plan.
While Wells Fargo and GreatBanc spent between $1,033 and $1,090 acquiring each of these securities, they only posted a unit value of $1,000 within the group’s 401(k) funded retirement savings plan. .
Note that these share buybacks were financed through a loan obtained from Wells Fargo.
In addition to reimbursing the affected funds, the U.S. bank will also have to pay a monetary penalty of $13.2 million, the Labor Department said.
Washington stresses that the agreement unveiled today does not imply any admission or denial of the accusations made against the parties involved.
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