11:28 AM EST, 02/07/2025 (MT Newswires) -- Amazon.com ( AMZN ) has agreed to pay $3.95 million to the District of Columbia to resolve a lawsuit alleging the company stole tips intended for delivery workers, Attorney General Brian Schwalb said Friday.

In 2022, the Office of the Attorney General sued Amazon ( AMZN ), claiming the company misled customers into thinking their tips would go to Amazon Flex delivery drivers, but instead, most of the tips were used to lower Amazon's ( AMZN ) labor costs and boost profits.

After previous legal action, Amazon ( AMZN ) drivers were already reimbursed for lost wages. The retailer, along with Amazon Logistics, will now pay $2.45 million in penalties and $1.5 million to cover costs. Amazon ( AMZN ) is also required to be transparent about its tipping practices by clearly stating how the tips are being used on both its website and app, Schwalb said.

Amazon ( AMZN ) did not immediately respond to MT Newswires' request for comment.

Shares of the company were down 3.9% in recent trading.

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