US EditionADM Announces Closure of Government Investigations Related to ADM's Prior Reporting Regarding Intersegment Sales
ADM agreed to a $40 million civil penalty with the SEC for overstating its Nutrition unit's performance while DOJ closed its criminal probe without charges.
- On Jan 27, Archer-Daniels-Midland Company agreed to pay a $40 million civil penalty to settle SEC charges, resolving the inquiry without admitting wrongdoing as the DOJ closed its criminal probe.
- Regulators say the case centers on intersegment transactions, retroactive rebates and price adjustments that allegedly inflated Nutrition business unit's reported performance, prompting an internal probe in early 2024.
- The market reaction was immediate as ADM shares dropped 24% after the SEC complaint alleged 10 counts, and the company revised filings twice, reducing Nutrition's operating profit.
- The SEC's response targeted Vikram Luthar, former Chief Financial Officer, seeking to bar him while Vince Macciocchi and Ray Young agreed to pay fines over $529,000 and $650,000 respectively, and Luthar's lawyer called the allegations 'meritless'.
- The company implemented new internal accounting controls and CEO Juan Luciano said, `These past couple of years have underscored what's core to ADM-- incorporating learnings to further strengthen our business`, after cooperating with regulators, the SEC said.
18 Articles
18 Articles
Archer Daniels Midland hit with $40M fine in price-fixing probe, 30 years after fraud scandal
Archer Daniels Midland Co. (ADM) is back in the headlines for all the wrong reasons. In the 1990s, the agricultural giant was implicated in a price-fixing conspiracy that became the basis for the book—and later Matt Damon movie—The Informant!. Now the company’s latest controversy centers around accounting in the company’s nutrition unit. After an investigation of lasting almost three years, ADM has reached a $40 million civil penalty settlement…
SEC takes action against ADM, three ex-executives over fraud
The US Securities and Exchange Commission (SEC) has taken enforcement action against Archer-Daniels-Midland Company (ADM) and three of its former executives—Vince Macciocchi, Ray Young, and Vikram Luthar, for inflating the reported performance of ADM’s Nutrition business segment. The SEC’s filings allege that ADM misrepresented Nutrition as a key driver of the company’s overall growth, while engaging in internal accounting adjustments that made …
Coverage Details
Bias Distribution
- 100% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
