Company agrees to $40 million settlement as federal investigations conclude fully
Archer-Daniels-Midland Company has reached a settlement with the U.S. Securities and Exchange Commission, bringing an end to a long-running investigation related to the company’s past financial reporting practices. Under the agreement, ADM will pay $40 million to resolve the matter without admitting or denying wrongdoing.
At the same time, the U.S. Department of Justice has closed its investigation into ADM and decided not to pursue further action. Together, these outcomes fully conclude federal investigations involving the company.
The SEC review focused on ADM’s historical segment-level reporting, particularly related to intersegment sales. ADM corrected certain accounting errors in March 2024 and later restated its 2023 Form 10-K and its first and second quarter 2024 Form 10-Q filings.
These restatements addressed reporting errors but did not affect ADM’s consolidated earnings, balance sheet, or cash flow.
“We are pleased to put these matters behind the Company. These past couple of years have underscored what’s core to ADM – incorporating learnings to further strengthen our business,” said Juan Luciano, Chair of the Board, President and CEO.
“This is reflected in the extensive actions we have taken to enhance our internal controls and ensure accuracy of our financial reporting. Looking ahead, we remain committed to operating with transparency and integrity and upholding the trust of our stakeholders every day,” said Luciano.
The SEC had filed charges against former ADM executives related to the performance reporting of the company’s Nutrition business segment. Regulators alleged that certain adjustments were made to intercompany transactions to make the segment appear more profitable during 2021 and 2022. A separate legal action remains ongoing against a former executive.
ADM stated that it has made significant changes to its financial leadership team and strengthened internal controls to improve accuracy and transparency. Company leadership emphasized its commitment to integrity, accountability, and investor trust going forward.
As part of the settlement, the SEC has established a Fair Fund (the settlement from ADM) that will distribute monetary relief to investors who were harmed by the violations.
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