ADM (NYSE: ADM) has announced the closure of government investigations related to its prior reporting regarding intersegment sales. The company has entered into a settlement agreement with the U.S. Securities and Exchange Commission (SEC) to resolve its investigation into the matter, agreeing to a payment of $40 million. The Department of Justice (DOJ) has also closed its investigation of ADM with no further action.
The SEC resolution noted that ADM acted to ensure that outside counsel conducted an internal investigation under the direction and oversight of the company’s audit committee of the board of directors, voluntarily reporting the company’s findings to the SEC’s staff. In March 2024, ADM corrected certain prior period errors, and in November 2024, the company restated its previously issued 2023 Form 10-K and Forms 10-Q for the first and second quarters of 2024 to address errors in its historical segment reporting.
It's important to note that the transactions addressed in the SEC resolution affected segment-level reporting and had no impact on the company’s reported consolidated balance sheet, earnings, or cash flows for the periods presented in the restated filings. ADM has also implemented significant changes to its financial leadership team and financial controls.
Juan Luciano, Chair of the Board, President, and CEO of ADM, expressed satisfaction in putting these matters behind the company and highlighted the extensive actions taken to enhance internal controls and ensure the accuracy of financial reporting. Furthermore, he emphasized the company's commitment to operating with transparency and integrity.
ADM is a global leader in innovative solutions from nature, functioning as an essential global agricultural supply chain manager and processor, a premier human and animal nutrition provider, a trailblazer in health and well-being, and a cutting-edge innovator in bio-based consumer and industrial solutions.
In terms of financial performance, the company restated its previously issued 2023 Form 10-K and Forms 10-Q for the first and second quarters of 2024 to address errors in its historical segment reporting. While the press release does not provide specific figures, it does indicate that these errors were corrected. Following these announcements, the company's shares moved -2.09%, and are now trading at a price of $65.18. If you want to know more, read the company's complete 8-K report here.
