By Jamie Martin
Archer-Daniels-Midland Company has announced that it has reached a settlement with the U.S. Securities and Exchange Commission to resolve an investigation into its prior segment reporting practices. As part of the agreement, ADM will pay $40 million without admitting or denying any wrongdoing.
The announcement also confirmed that the U.S. Department of Justice has closed its investigation into ADM with no further action. These decisions officially bring all federal investigations involving the company to a close.
The SEC’s investigation centered on how ADM previously reported transactions between its business segments. In response, ADM corrected certain reporting errors in March 2024 and later restated its 2023 annual filing and early 2024 quarterly reports. The company stated that the reporting issues did not affect its overall financial results, cash flow, or balance sheet.
Regulators noted that ADM took immediate steps once the matter was identified. The company’s Audit Committee oversaw an internal investigation conducted by independent legal counsel, and ADM voluntarily shared the results with the SEC. The Commission cited this cooperation and the company’s corrective actions when approving the settlement.
The SEC had brought charges against former executives connected to the Nutrition segment, alleging that adjustments were made to internal transactions to make the business unit appear more profitable than it was. One legal case involving a former executive is continuing separately.
“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 settlement includes the creation of a Fair Fund (From the ADM settlement), which will be used to compensate investors who were harmed by the reporting issues, reinforcing regulatory efforts to protect market integrity.
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