Catenaa, Tuesday, February 03, 2026- Archer-Daniels-Midland Company will pay $40 million to settle US Securities and Exchange Commission charges over inflated financial reporting in its Nutrition business unit, the SEC had announced.
The settlement concludes government investigations that also prompted the U.S. Department of Justice to close a related criminal probe without filing charges.
The SEC charged ADM and two former executives, Vince Macciocchi and Ray Young, with overstating performance metrics for the Nutrition segment, launched in 2018 to expand high-value specialty ingredients for food, beverage, and animal feed industries.
Federal authorities examined whether ADM shifted goods between units at below cost to boost reported results.
The accounting issues forced ADM to revise financial statements twice, triggering shareholder litigation and losses in share value. ADM’s CEO, Juan Luciano, said the company has implemented “extensive actions” to strengthen internal controls and improve oversight of intersegment transactions.
The SEC noted that ADM cooperated fully, conducting an internal investigation, voluntarily sharing findings, and providing additional analyses from outside accounting experts.
Remedial measures include updated accounting policies, procedural changes, and ongoing testing of new controls.
ADM shares rose modestly in after-hours trading following the announcement. Analysts say the settlement resolves years-long uncertainty for investors and allows the company to focus on operational performance without facing criminal liability for past reporting errors.
