American Express Company (AXP) said in a regulatory filing Thursday that it has agreed to pay $230 million to settle a case with the US Department of Justice and in principle with the Federal Reserve Board regarding investigations of sales practices dating back to 2021 and earlier.
The company said the costs associated with the settlements were mostly allocated earlier and do not impact its 2024 guidance.
"We cooperated extensively with these agencies and our regulators and took decisive voluntary action to address these issues, including discontinuing certain products several years ago, conducting a comprehensive internal review, taking appropriate disciplinary measures, making organizational changes, and enhancing policies, compliance, and training programs," the company said.
The Justice Department accused American Express of selling deceptively marketed credit card and wire transfer products to small businesses through an affiliated entity from 2014 to 2017 and alleged that its employees made false assertions regarding wire transfer products and tax benefits from 2018 to 2021.
The company added that it expects to finalize its agreement with the Federal Reserve in the coming weeks.
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