Kaskela Law LLC announces that it is investigating Archer-Daniels-Midland Company (NYSE: ADM) (“ADM” or the “Company”) on behalf of the company’s long-term investors.
Recently a securities fraud complaint was filed against ADM on behalf of certain investors who purchased shares of the company’s stock between April 30, 2020 and January 21, 2024. According to the complaint, during that time period ADM and certain of the company’s senior executive officers artificially inflated the value of ADM’s stock by making a series of materially false and/or misleading statements to investors about the company’s reported financial and operational results.
As detailed in the complaint, defendants “have admitted that they violated stated Company policy and generally accepted accounting principles (“GAAP”) to falsely overstate profits of ADM’s newest and most important business segment, “Nutrition,” every year from 2018 through 2023. ... Several executives and Defendants have been forced out of the Company as a result of the misconduct, the Company had to restate its financial results, and both the SEC and the United States Department of Justice (‘DOJ’) have launched investigations into the fraudulent accounting.”
During the relevant time period, certain of the company’s senior executive officers took advantage of the inflated price of ADM’s stock to sell over $107 million of their personally held ADM stock. Then, after these stock sales, on January 21, 2024, ADM revealed: (i) that it was under investigation by the SEC for accounting practices and procedures relating to intersegment transactions involving the Nutrition segment; (ii) that the Company had commenced an internal investigation and placed its CFO on administrative leave “effective immediately”; and (iii) that ADM was withdrawing its entire Nutrition profit outlook and delaying the filing of its 2023 10-K. On this news, ADM’s stock price declined by $16.50 per share (approximately 24% in value), reportedly marking the stock’s largest one-day percentage decline since 1929.
The investigation seeks to determine whether the members of ADM’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct and disclosures.
Long-term ADM shareholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 or (888) 715 – 1740 for additional information about this investigation and their legal rights and options, or by clicking on the following link (or by copying and pasting the link into your browser):
https://kaskelalaw.com/cases/archer-daniels-midland/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240701428354/en/
Contacts
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
