Amazon.com Inc. reached a settlement valued at more than $1 billion to end claims that it fails to properly refund customers for their returns.

In addition to providing $600 million in refunds, the company will pay class members more than $300 million, according to documents filed Jan. 23 in the US District Court for the Western District of Washington. Amazon has also agreed to improve its return and refund practices with better monitoring and customer notifications, among other measures that the court filings said are worth more than $360 million.

The settlement stems from a 2023 lawsuit that accused the …