DOJ launches probe into ADM over its accounting practices
Published 2:03 pm Monday, February 5, 2024
The U.S. Attorney’s Office in Manhattan has launched an investigation into the accounting practices at Archer-Daniels-Midland Co., according to people with direct knowledge of the matter.
The probe is focused on the company’s nutrition business, said the people, who asked not to be named discussing confidential information. Shares of the crop trader fell as much as 4.8% in New York trading.
It’s the latest in the saga stemming from the nutrition unit.
ADM shook the commodity world last month after it suspended Chief Financial Officer Vikram Luthar and cut its earnings outlook pending an outside counsel inquiry into its accounting practices involving the troubled segment. The stock has slumped about 20% since the suspension was announced.
The company probe was prompted by a U.S. Securities and Exchange Commission request. Now, the DOJ investigation raises the specter of potential legal consequences for ADM’s reporting procedures, boosting concerns about the full impact of what has occurred internally.
An ADM spokesman declined to comment on the DOJ investigation. The DOJ declined to comment.