Life insurance giant Paychex has agreed to pay $10 million to settle allegations that it was mis-reporting its life insurance policies to insurers and underpaying consumers, the company said in a statement Friday.
The settlement is the latest in a string of lawsuits that have accused the company of misleading consumers about its life and disability insurance policies.
The settlements, which are confidential, were announced by the company on behalf of three plaintiffs who were former employees.
The company said it was cooperating with authorities to prosecute the defendants.
The payments were part of an agreement that also required the company to conduct a review of its insurance practices.
The company’s board of directors also approved the settlement, which is in line with the company’s previous agreements with the Justice Department and the Federal Trade Commission, according to the company.