Wells Fargo Reaches Agreement with U.S. Department of Labor Related to Legacy 401(k) Plan Matter

SAN FRANCISCO--(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