ADM to Pay $40M SEC Penalty Over Accounting Violations, Avoids Criminal Charges

Archer-Daniels-Midland (ADM) will pay a $40 million civil penalty to settle U.S. SEC charges that it and two former executives inflated financial results for its Nutrition segment. The U.S. Department of Justice simultaneously closed a related criminal investigation without filing charges. The settlement resolves investigations into accounting irregularities that forced ADM to restate financial reports and led to executive departures. The issues involved intersegment transactions that artificially boosted performance metrics for the Nutrition unit, impacting executive compensation tied to its growth. ADM shares rose 0.34% in after-hours trading following the January 27 announcement. ADM CEO Juan Luciano stated the company is "pleased to put the matter behind them" and has implemented enhanced internal controls. The SEC noted ADM's cooperation, including its internal investigation and voluntary reporting of findings, as factors in the settlement.