Zenefits has reached a deal with California regulators to the tune of $7 million, BuzzFeed News reports, citing a "person briefed on the deal." The insurance company has spent the last nine months trying to rebuild its business after revelations arose that the company systematically skirted insurance laws and regulations.
Earlier this year, Zenefits ousted its founder and CEO and spent months working with authorities, investors, and customers in an attempt to rebuild its reputation. This California settlement, according to BuzzFeed, will be a milestone for the company as it lets the insurance startup do business once again in its home turf.
A Zenefits spokesperson provided the following comment following BuzzFeed's report:
"We are pleased to reach a settlement with the California Department of Insurance, which recognized our remediation efforts by suspending half the fine. We now have a clean bill of health from our lead regulator as well as 16 other states. New management has righted the ship at Zenefits. We've moved past these historical issues, and now we're focused on serving our 20,000+ customers and delivering All-in-One HR to small businesses."
Last month, Zenefits relaunched its services, hoping to showcase its new values. The company's current CEO, David Sacks, sat down with Fast Company and talked about the company's path. You can read the interview here. CGW