Grain trader Archer-Daniels-Midland to pay $40 million civil penalty after SEC charges for inflating business segment performance. DOJ closes related criminal probe without charges. Former executives face charges. ADM pleased to resolve matter, took actions to enhance controls. ADM shares up 0.34% after-hours.

Investigation into accounting issues at ADM’s “Nutrition” unit began in early 2024, led to exit of former CFO. Company inaccurately reported financial results for Nutrition unit. Shares plummeted in 2024, top executives under pressure. SEC considered ADM’s cooperation in settlement offer, including internal investigation and additional analyses from outside expert.

ADM’s remedial measures include new internal accounting controls around intersegment transactions, amending policies, and testing effectiveness of controls. SEC acknowledges ADM’s cooperation in settlement. News of accounting irregularities broke in early 2024, leading to investigations and shareholder litigation. Former executives facing charges.

Read more at Yahoo Finance: ADM to pay $40 million in US SEC settlement, avoids criminal charges